GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
4th Edition
ISBN: 9781260087376
Author: M. David Haddock Jr. Professor
Publisher: McGraw-Hill Education
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Chapter 9, Problem 7E
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The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2018, balance of $14,832.62. Information that might be useful in preparing a bank reconciliation is as follows:
Outstanding checks were $1,340.55.
The December 31, 2018, cash receipts of $585 were not deposited in the bank until January 2, 2019.
One check written in payment of rent for $248 was correctly recorded by the bank but was recorded by MSI as a $284 disbursement.
In accordance with prior authorization, the bank withdrew $470 directly from the checking account as payment on a mortgage note payable. The interest portion of that payment was $360. MSI has made no entry to record the automatic payment.
Bank service charges of $16 were listed on the bank statement.
A deposit of $885 was recorded by the bank on December 13, but it did not belong to MSI. The deposit should have been made to the checking account of MIS, Inc.
The bank statement included a charge of $85 for an NSF check.…
Using the following information, prepare the bank reconciliation for Marks Corp for October 30, 2020.
Be sure to exclude items that do not belong on a bank reconciliation.
a. The unadjusted balance of cash in the general ledger was a debit balance of $3,000.
b. The ending balance of cash per the bank statement was $3,500.
c. Outstanding checks are $925.
d. Bank service charge on the bank statement was $30.
e. Ending balance of notes receivable in the general ledger is $500.
f. Interest earned on the bank statement was $5.
g. Deposits in transit are $400.
The following data represents information necessary to assist in preparing the July 31, 2019 bank reconciliation for Domore Company.
On July 31, the bank balance was $5,353.
The bank statement indicated a deduction of $20 for all bank service charges.
A customer deposited $1,210 directly into the bank account to settle an outstanding accounts receivable bill.
Cheque #566 for $800 and cheque #573 for $560 have been recorded in the company ledger but did not appear on the bank statement.
A customer paid an amount of $4,570 to Domore Company on July 31 but the deposit did not appear on the bank statement.
The accounting clerk made an error and recorded a $150 cheque as $1,500. The cheque was written to pay an outstanding accounts payable account.
Cheque #8603 for $170 was deducted from Domore Company's account by the bank. This cheque was not written by Domore Company and needs to be reversed by the bank.
The bank included an NSF cheque in the amount of $490 relating to a…
Chapter 9 Solutions
GEN COMBO COLLEGE ACCOUNTING; CONNECT ACCESS CARD
Ch. 9 - Prob. 1.1SRQCh. 9 - What is a promissory note? In what situation would...Ch. 9 - How would the receipt of a 62 refund for supplies...Ch. 9 - Prob. 1.4SRECh. 9 - Prob. 1.5SRECh. 9 - Prob. 1.6SRACh. 9 - Prob. 2.1SRQCh. 9 - Prob. 2.2SRQCh. 9 - Prob. 2.3SRQCh. 9 - Prob. 2.4SRE
Ch. 9 - Prob. 2.5SRECh. 9 - Prob. 2.6SRACh. 9 - Prob. 3.1SRQCh. 9 - Prob. 3.2SRQCh. 9 - Prob. 3.3SRQCh. 9 - Prob. 3.4SRECh. 9 - Prob. 3.5SRECh. 9 - Prob. 3.6SRACh. 9 - Prob. 1CSRCh. 9 - Prob. 2CSRCh. 9 - Prob. 3CSRCh. 9 - Prob. 4CSRCh. 9 - Prob. 5CSRCh. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Journalizing cash receipts, cash short or over,...Ch. 9 - Prob. 2PACh. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Prob. 5PACh. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Prob. 2PBCh. 9 - Prob. 3PBCh. 9 - Prob. 4PBCh. 9 - Prob. 5PBCh. 9 - Prob. 6PBCh. 9 - Prob. 1CTPCh. 9 - Prob. 2CTPCh. 9 - Prob. 1MFCh. 9 - Prob. 2MFCh. 9 - Prob. 3MFCh. 9 - Prob. 4MFCh. 9 - Prob. 5MFCh. 9 - Prob. 6MFCh. 9 - Prob. 7MFCh. 9 - Prob. 8MFCh. 9 - Borrowing from Petty Cash Daniel Brown is in...Ch. 9 - Prob. 1FSA
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- The bank reconciliation revealed that one deposit had cleared the bank two weeks after the date of the deposit. Should this be of concern? Why, or why not?arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $12,565. Book balance: $13,744. Deposits in transit: $2,509. Outstanding checks: $1,777. Bank charges: $125. Bank incorrectly charged the account for $412. The bank will correct the error next month. Check number 1879 correctly cleared the bank in the amount of $562 but posted in the accounting records as $652. This check was expensed to Utilities Expense.arrow_forwardThe bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Prepare the correcting journal entry.arrow_forward
- Which of the following items are found on a book side of the bank reconciliation? A. beginning bank balance B. outstanding checks C. interest income D. error made by bankarrow_forwardThe bank reconciliation shows the following adjustments. Deposits in transit: $526 Outstanding checks: $328 Bank charges: $55 NSF checks: $69 Prepare the correcting journal entry.arrow_forwardUsing the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance: $5,577 Deposits in transit: $1,546 Outstanding checks: $956 Interest income: $56 NSF check: $456arrow_forward
- Complex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.arrow_forwardThe bank reconciliation shows the following adjustments: Deposits in transit: $1,234 Outstanding checks: $558 Bank service charges: $50 NSF checks: $250 Prepare the correcting journal entry.arrow_forwardDomingo Company received the following bank statement. Using PA9, prepare the bank reconciliation.arrow_forward
- Hajun Company received the following bank statement. Using the information from PB9 and PB10, prepare the bank reconciliation.arrow_forwardOn October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,660, while the company’s records show a balance of $12,306. Information that might be useful in preparing a bank reconciliation is as follows: Outstanding checks are $1,205. The October 31 cash receipts of $760 are not deposited in the bank until November 2. One check written in payment of utilities for $132 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $213. In accordance with prior authorization, the bank withdraws $645 directly from the checking account as payment on a note payable. The interest portion of that payment is $45 and the principal portion is $600. Blockwood has not recorded the direct withdrawal. Bank service fees of $19 are listed on the bank statement. A deposit of $562 is recorded by the bank on October 13, but it did not belong to Blockwood. The deposit should have been made to the checking account of Hollybuster Video, a…arrow_forwardOn October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,660, while the company’s records show a balance of $12,306. Information that might be useful in preparing a bank reconciliation is as follows: Outstanding checks are $1,205. The October 31 cash receipts of $760 are not deposited in the bank until November 2. One check written in payment of utilities for $132 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $213. In accordance with prior authorization, the bank withdraws $645 directly from the checking account as payment on a note payable. The interest portion of that payment is $45 and the principal portion is $600. Blockwood has not recorded the direct withdrawal. Bank service fees of $19 are listed on the bank statement. A deposit of $562 is recorded by the bank on October 13, but it did not belong to Blockwood. The deposit should have been made to the checking account of Hollybuster Video, a…arrow_forward
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