ACC 305 Lecture Notes - Lecture 64: Bank Reconciliation, Bank Statement, The Monthly
Get access
Related Documents
Related Questions
Chapter 7 Homework- Bank Rec | ||||||||||
The following informationpertains to the bank transactions of Midwestern Company: | ||||||||||
a | Cash on the books as of June 30 was $519. Cash asshown on the bank statement for the same date was $1,440 | |||||||||
b | A deposit of $260, representing cash receipts as ofJune 30, did not appear on the bank statement | |||||||||
c | Outstanding checks totaled $240 | |||||||||
d | Bank service charges for June amounted to $15 | |||||||||
e | The bank collected for Midwestern Company $1040(which includes $40 interest) on a note left for collection | |||||||||
f | An NSF check for $84 from a customer, Joe S., wasreturned with the statement | |||||||||
Required | ||||||||||
1 | Prepare the bank reconciliation for MidwesternCompany as of June 30 | |||||||||
2 | State the amount of cash that would appear on thebalance sheet as of June 30 | |||||||||
Midwestern Company | ||||||||||
Bank Reconciliation | ||||||||||
June 30, 2015 |
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,110. The bank statement indicated a balance of $16,730 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
Checks outstanding totaled $6,020.
A deposit of $6,270, representing receipts of June 30, had been made too late to appear on the bank statement.
The bank collected $3,260 on a $3,100 note, including interest of $160.
A check for $880 returned with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
A check drawn for $30 had been erroneously charged by the bank as $300.
Bank service charges for June amounted to $40.
1. Prepare a bank reconciliation.
Pala Medical Co. | ||||||||||||||||||||||||||
Bank Reconciliation | ||||||||||||||||||||||||||
June 30, 20Y1 | ||||||||||||||||||||||||||
Cash balance according to bank statement | $ | |||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Deposit of June 30, not recorded by bank | $ | |||||||||||||||||||||||||
Bank error in charging check as $300 instead of $30 | ||||||||||||||||||||||||||
Outstanding checks | ||||||||||||||||||||||||||
Total adjustments | ||||||||||||||||||||||||||
Adjusted balance | $ | |||||||||||||||||||||||||
Cash balance according to company's records | $ | |||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Proceeds of note collected by bank, including $160 interest | $ | |||||||||||||||||||||||||
Error in recording check. | ||||||||||||||||||||||||||
Bank service charges | ||||||||||||||||||||||||||
Total adjustments | ||||||||||||||||||||||||||
Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
| $ |