1. Prepare all journal entries thatwould be required by the bank reconciliation. Prepare a generaljournal.
Excel communications had a computer failure on Febuary 1, 2014,which resulted in the loss of data, including the balance of itsCash account and its bank reconciliation from January 31, 2014. Theaccountant, Brad Eyers, has been able to obtain the followinginformation from the records of the company and its bank:
A. Anexamination showed that two cheques (#461 for $645 and #492 for$225) had not been cashed as of February, 1. Eyers recalled thatthere was only one deposit in transit on the January 31 bankreconciliation, but was unable to recall the amount.
B. Thecash receipts and cash payments journal contained the followingentries for February 2014:
Cash ReceiptsAmounts Cheque# Amount
$876 499 $678
$1230 500 $651
$1545 501 $2578.50
$612 502 $846
$2460 503 $327
504 $820
505 void
506 $314
507 $543
---------------------------------------------------------------------------------------------------------------
6723 $6757.50
C.
Date
Cheques and Other Debits
Deposits and Other Credits
Deposits and Other Credits
Balance
Feb. 1
#500
660
3579
3
#492
3354
5
#501
775.50
8
876
1651.50
16
#499
585
1558.50
17
EFT
1116
19
EFT
720
1836
21
#503
1230
2739
22
#504
EFT
336.50
2215.50
24
EFT
471
2686.50
26
NSF
1545
2439
27
SC
2401.50
27
#507
612
2470.50
D. Thedeposit made on February 16 was for the collection of a notereceivable ($540) plus interest
E. The EFTs had not yet been recorded by Excel Communications sincethe bank statement was the first notification of them.
· The February 17EFT was for the monthly payment on an insurance policy for ExcelCommunications.
· The February 19and 24 EFTs were collections on accounts receivable
· The February 22EFT was in error â the transfer should have been to AccelCommunications
F. The NSF cheque on February 26 was received from a customer aspayment of $1792.50 for installation of a satellite purchased fromExcel.
G. Cheque #504 was correctly written for $860 for the purchase ofinventory (assume perpetual), but incorrectly recorded by the cashpayments clerk.
General Journal
DATE
2014
ACCOUNT TITLES AND EXPLANATIONS
POST. REF.
DEBIT
CREDIT
1. Prepare all journal entries thatwould be required by the bank reconciliation. Prepare a generaljournal.
Excel communications had a computer failure on Febuary 1, 2014,which resulted in the loss of data, including the balance of itsCash account and its bank reconciliation from January 31, 2014. Theaccountant, Brad Eyers, has been able to obtain the followinginformation from the records of the company and its bank:
A. Anexamination showed that two cheques (#461 for $645 and #492 for$225) had not been cashed as of February, 1. Eyers recalled thatthere was only one deposit in transit on the January 31 bankreconciliation, but was unable to recall the amount.
B. Thecash receipts and cash payments journal contained the followingentries for February 2014:
Cash ReceiptsAmounts Cheque# Amount
$876 499 $678
$1230 500 $651
$1545 501 $2578.50
$612 502 $846
$2460 503 $327
504 $820
505 void
506 $314
507 $543
---------------------------------------------------------------------------------------------------------------
6723 $6757.50
C.
Date | Cheques and Other Debits | Deposits and Other Credits | Deposits and Other Credits | Balance |
Feb. 1 | #500 | 660 | 3579 | |
3 | #492 | 3354 | ||
5 | #501 | 775.50 | ||
8 | 876 | 1651.50 | ||
16 | #499 | 585 | 1558.50 | |
17 | EFT | 1116 | ||
19 | EFT | 720 | 1836 | |
21 | #503 | 1230 | 2739 | |
22 | #504 | EFT | 336.50 | 2215.50 |
24 | EFT | 471 | 2686.50 | |
26 | NSF | 1545 | 2439 | |
27 | SC | 2401.50 | ||
27 | #507 | 612 | 2470.50 |
D. Thedeposit made on February 16 was for the collection of a notereceivable ($540) plus interest
E. The EFTs had not yet been recorded by Excel Communications sincethe bank statement was the first notification of them.
· The February 17EFT was for the monthly payment on an insurance policy for ExcelCommunications.
· The February 19and 24 EFTs were collections on accounts receivable
· The February 22EFT was in error â the transfer should have been to AccelCommunications
F. The NSF cheque on February 26 was received from a customer aspayment of $1792.50 for installation of a satellite purchased fromExcel.
G. Cheque #504 was correctly written for $860 for the purchase ofinventory (assume perpetual), but incorrectly recorded by the cashpayments clerk.
General Journal | |||||
| DATE 2014 | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT | |
