The bank statement for Allen Co. indicates a balance of $8,000.00 on June 30, 2005. After the journals for June had been posted, the cash account had a balance of $3,675.00. Prepare a bank reconciliation on the basis of the following reconciling items:
(a) Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.
(b) Deposits in transit not recorded by bank, $500.00
(c) Bank debit memorandum for service charges, $25.00
(d) Bank credit memorandum for note collected by bank, $2850, including $50 interest
(e) Bank debit memorandum for $218.00 NSF (not sufficient funds) check from alice Bell, a customer
(f) Checks outstanding, $2,200.00
The bank statement for Allen Co. indicates a balance of $8,000.00 on June 30, 2005. After the journals for June had been posted, the cash account had a balance of $3,675.00. Prepare a bank reconciliation on the basis of the following reconciling items:
(a) Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.
(b) Deposits in transit not recorded by bank, $500.00
(c) Bank debit memorandum for service charges, $25.00
(d) Bank credit memorandum for note collected by bank, $2850, including $50 interest
(e) Bank debit memorandum for $218.00 NSF (not sufficient funds) check from alice Bell, a customer
(f) Checks outstanding, $2,200.00
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Related questions
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.
| $ | |||||||||||||||||||||||||
Please answer.
Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June indicated a balance of $3,350. The company's cash account in the general ledger showed a balance of $2,464 on June 30. Other relevant information includes the following:
Deposits in transit on June 30 total $2,550.
The bank statement shows a debit memorandum for a $10 check printing charge.
Check No. 160 payable to Simon Company was recorded in the accounting records for $124 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has an $18 credit balance and the check to them should have been $142.
Outstanding checks as of June 30 totaled $3,100.
Check No. 176 was correctly written and paid by the bank for $203. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $230.
The bank returned a NSF check in the amount of $311.
The bank included a credit memorandum for $630 representing a collection of a customer's note. The principle portion was $610 and the interest portion was $20. The interest had not been accrued.
Required
a. Prepare the June bank reconciliation for Chicago Scooter Company.
b. Prepare any necessary adjusting entries.
a.
| CHICAGO SCOOTER COMPANY Bank Reconciliation June 30 | |||
|---|---|---|---|
| Cash Balance per Bank | $Answer | ||
| Add: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| Less: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | $Answer | ||
| Cash Balance per Books | $Answer | ||
| Add: | Accounts Payable Error | $Answer | |
| Add: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | Answer |
| Less: | AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | Answer | |
| Less: | NSF Check | Answer | Answer |
| AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding ChecksCheck Printing Charge | $Answer | ||
b.
| GENERAL JOURNAL | ||||
|---|---|---|---|---|
| Date | Description | Debit | Credit | |
| June | 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | $Answer | $Answer |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To correct check error in recording check No. 176. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| Interest Earned | Answer | Answer | ||
| To record note collection by bank. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To record check printing charge. | ||||
| 30 | AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | |
| AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable | Answer | Answer | ||
| To record NSF check. | ||||
