The balance in Happ, Inc.âs general ledger Cash account was$14,300 at September 30, before reconciliation. The September 30balance shown in the bank statement was $12,830. Reconciling itemsincluded deposits in transit, $1,370; bank service charges, $155;NSF check written by a customer and returned with the bankstatement, $620; outstanding checks, $550; and interest credited tothe account during September but not recorded on the companyâsbooks, $125.
Required:
Prepare a bank reconciliation as of September 30 for Happ,Inc.
HAPP, INC. Bank Reconciliation September 30 Balanceper bank Balanceper books Add: Add: 0 0 0 Deduct: Deduct: 0 0 Reconciled balance $0 Reconciled balance $0
The balance in Happ, Inc.âs general ledger Cash account was$14,300 at September 30, before reconciliation. The September 30balance shown in the bank statement was $12,830. Reconciling itemsincluded deposits in transit, $1,370; bank service charges, $155;NSF check written by a customer and returned with the bankstatement, $620; outstanding checks, $550; and interest credited tothe account during September but not recorded on the companyâsbooks, $125.
Required:
Prepare a bank reconciliation as of September 30 for Happ,Inc.
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Related questions
Refer to the information given below:
The October 31 cash balance in the generalledger is $846.
The October 31 balance shown on the bankstatement is $391.
Checks issued but not returned with the bankstatement were No. 462 for $11 and No. 483 for $57.
A deposit made late on October 31 for $438 isincluded in the general ledger balance but not in the bankstatement balance.
Returned with the bank statement was a noticethat a customerâs check for $76 that was deposited on October 25had been returned because the customerâs account wasoverdrawn.
During a review of the checks that werereturned with the bank statement, it was noted that the amount ofCheck No. 471 was $65 but that in the companyâs records supportingthe general ledger balance, the check had been erroneously recordedas a payment of an account payable in the amount of $56.
Required:
Prepare a bank reconciliation as of October 31 from the aboveinformation. (Total theentries of the same account together, when entering in the bankreconciliation statement.)
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The bank reconciliation prepared by Gemma Tours on March 31,2017, appeared as follows:
| Gemma Tours | ||||
| Bank Reconciliation | ||||
| March 31, 2017 | ||||
| Bank statementbalance | $15,500 | Book balance | $34,257 | |
| Add: | ||||
| Deposit of March 31 in transit | 22,044 | |||
| $37,544 | ||||
| Deduct: | ||||
| Outstanding cheques: | ||||
| #79 | $1,306 | |||
| #84 | 1,981 | 3,287 | ||
| Adjusted bankbalance | $34,257 | Adjusted bookbalance | $34,257 | |
The Cash account in the General Ledger appeared as follows on April30:
| Cash | Acct. No.101 | ||||
| Date | Explanation | PR | Debit | Credit | Balance |
| 2017 | |||||
| March 31 | Balance | 34,257.00 | |||
| April 30 | CR11 | 35,645.00 | 69,902.00 | ||
| 30 | CD14 | 45,533.00 | 24,369.00 | ||
A list of deposits made and cheques written during April, takenfrom the Cash Receipts Journal and Cash Disbursements Journal, isshown below:
| Deposits Made | |
| April 7 | $14,865.00 |
| 13 | 892.00 |
| 18 | 14,272.00 |
| 23 | 994.00 |
| 27 | 1,981.00 |
| 30 | 2,641.00 |
| Total April CashReceipts | $35,645.00 |
| Cheques Written | |
| No.91 | $ 1,256 |
| 92 | 5,475 |
| 93 | 2,590 |
| 94 | 3,613 |
| 95 | 3,033 |
| 96 | 1,895 |
| 97 | 8,862 |
| 98 | 3,033 |
| 99 | 8,982 |
| 100 | 6,794 |
| Total April CashDisbursements | $45,533 |
The following bank statement is available for April: (Note: Thebank deposits interest into the bank account at the end of everymonth.)
| Bank Statement | |||||
| To:Gemma Tours | April 30, 2017 Bank of Montreal | ||||
| Cheques/Charges | Deposits/Credits | Balance | |||
| 15,500 | |||||
| #93 | 04/02 | 2,509 | 04/03 | 22,044 | 35,035 |
| #92 | 04/07 | 5,475 | 04/07 | 14,865 | 44,425 |
| #84 | 04/13 | 1,981 | 04/13 | 892 | 43,336 |
| NSF | 04/18 | 6,876 | 04/18 | 14,272 | 50,732 |
| #95 | 04/23 | 3,033 | 04/23 | 994 | 48,693 |
| #99 | 04/27 | 8,982 | 04/27 | 1,981 | 41,692 |
| #96 | 04/30 | 1,895 | 04/30 | 2,641 | 42,438 |
| #97 | 04/30 | 8,862 | INT | 46 | 33,622 |
| #94 | 04/30 | 3,613 | 30,009 | ||
| PMT | 04/30 | 9,861 | 20,148 | ||
| INT | 04/30 | 35 | 20,113 | ||
| SC | 04/30 | 55 | 20,058 | ||
| NSF = NotSufficient Funds | SC =Service Charge | PMT =Principal Payment | INT =Interest | ||
In reviewing cheques returned by the bank, the bookkeeperdiscovered that cheque #93, for delivery expense, was recorded inthe Cash Disbursements Journal incorrectly as $2,590. The NSFcheque was that of customer Laura Clark, deposited in April.
Required:
a. Prepare a bank reconciliation at April 30.
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b. Prepare the necessary journal entries tobring the General Ledger Cash account into agreement with theadjusted balance on the bank reconciliation.
Journal entry worksheet
Record interest earned.
Note: Enter debits before credits.
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Journal entry worksheet
Record to account for error in Cheque #93.
Note: Enter debits before credits.
Journal entry worksheet Record to reinstate customer account. Note: Enter debits before credits.
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