When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October.

When Crane Holdings Ltd. received its bank statement for the month of October, it showed that the company had a cash balance of $13,760 as at October 31. Crane's general ledger showed a cash balance of $15,637 at that date. A comparison of the bank statement and the accounting records revealed the following information: 1. 2. 3. 4. 5. 6. Bank service charges and debit and credit card processing fees for the month were $53. A cheque in the amount of $472 from one of Crane's customers that had been deposited during the last week of October was returned with the bank statement as "NSF." Cheque #3421, which was a payment for utilities expenses, had been correctly written for $705 but had been incorrectly recorded in the general ledger as $558. Crane had written and mailed out cheques with a value of $2,173 that had not yet cleared the bank account. During the month, the bank collected a $1,640 note receivable plus the outstanding interest of $148 on behalf of Crane. The interest had already been accrued by Crane. The cash receipts for October 31 amounted to $5,166 and had been deposited in the night deposit chute at the bank on the evening of October 31. These were not reflected on the bank statement for October.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

See similar textbooks

Similar questions

Bridgeport Company's bank statement for the month ended January 31 showed a balance per bank of $34,728. The company's Cash balance at January 31 was $16,398. Other information is as follows: 1. 2. 3. 4. 5. 6. 7. Cash receipts for January were $87,679, of which $5,295 was outstanding at January 31. The bank statement shows a debit memorandum for $135 for cheque printing charges. Cheque no. 119 payable to Sunland Company was recorded in the general journal and cleared the bank for $343. A review of the Accounts Payable subsidiary ledger shows a $131 credit balance in the account of Sunland Company and that the payment to it should have been for $474. The total amount of cheques written during January was $75,126, of which $5,979 was outstanding at January 31. Cheque No. 127 was correctly written and paid by the bank for $109. The general journal reflects an entry for cheque no. 127 as a debit to Accounts Payable and a credit to Cash for $190. The bank returned an NSF cheque from a…
On July 31, Cullumber Ltd. had a cash balance of $10,870 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of $18,276. A comparison of the bank statement with the Cash account revealed the following: 1. The bank statement included service charges and debit and credit card processing fees of $94. 2. The bank statement included electronic collections from customers on account totalling $4,400. Cullumber had not recorded the EFT. 3. A deposit of $2,600 made by another company was incorrectly added to Cullumber’s account by the Caisse Populaire. 4. Salaries of $3,520 were paid electronically during the month. The company has already recorded these. 5. Cheques outstanding on June 30 totalled $2,310. Of these, $1,810 worth cleared the bank in July. All cheques written in July cleared the bank in July. PART A) Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.)…
In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…
On May 31, O'Hearne Limited had a cash balance per books of $13,126. The bank statement from Community Bank on that date showed a balance of $15,230. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $80. 2. The bank statement included electronic collections totalling $4,188. These were not previously recorded. 3. Outstanding cheques at April 30 totalled $2,900. Of these, $2,240 worth cleared the bank in May. There were $1,892 of cheques written in May that were still outstanding on May 31. 4. Included with the cancelled cheques was a cheque issued by O'Bearne Inc. for $1,200 that was incorrectly charged to O'Hearne by the bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,350 issued by a customer in payment of its account. In addition, the bank charged an $80 processing fee for this transaction. 6. The May 31 deposit of $1,926 was not included in the deposits on…
On December 31, Blossom Ltd. had a cash balance of $18,390 in its general ledger. The bank statement from the National Bank on that date showed a balance of $15,330. A comparison of the bank statement with the Cash account revealed the following: 1. 2. 3. 4. 5. (a) Cheques outstanding on November 30 totalled $3,980. Of these, $2,600 worth cleared the bank in December. All cheques written in December cleared the bank in December. A deposit of $2,390 made on December 31, was not recorded by National Bank until January 5. Supplies of $1,010 were paid via EFT during the month of December. The company has already recorded these. The bank statement showed automatic EFT withdrawals for utility payments totalling $1,500. The bank statement included service charges and debit and credit card processing fees of $550. Prepare the bank reconciliation at December 31. (List items that increase balance as per bank & books first.) BLOSSOM LTD. Bank Reconciliation December 31
Weave Company received a bank statement for the month of August. The bank statement showed the following information: Balance 1 August $68,326 Deposits 45,300 Cheques processed (63,222) Service charges (50) Monthly deposit into saving account directly (26,120) Deducted by bank from account (780) Balance, 31st August $49,574 Weave Co’s general ledger account had a balance of $78,304 at the end of August. (i) Deposits shown in the general ledger account but not in the bank amounting to $8,200; (ii) all cheques written by the company were processed by the bank except for those totaling $8,420; (iii) A $2,000 cheque to a supplier correctly recorded by the bank but was incorrectly recorded by the company as $200 credit to cash. Required: 1. Prepare a bank reconciliation statement for the month of August. 2. Prepare the necessary journal entries at the end of August to adjust the general ledger cash account.
On May 31, RDC Company had a cash balance per books of $13,022. The bank statement from City Bank on that date showed a balance of $15,120. A comparison of the bank statement with the company's Cash account revealed the following: 1. The bank statement included a bank service charge of $56, which is not recorded by RDC's book. 2. The bank statement included electronic collections from customers totaling $4,177. These were not previously recorded by the company. 3. Outstanding checques at April 30 is $2,900. In May, $2,240 cheques are cleared by the bank, and $1,892 cheques are written by RDC. 4. A cheque $1,100 issued by ODC Inc. was incorrectly charged to RDC company by the City bank. 5. On May 31, the bank statement showed a returned (NSF) cheque for $1,340 issued by a customer in payment of its account. In addition, the bank charged $70 processing fee for this transaction. 6. The May 31 deposit of $2,065 was not included in the deposits on the May bank statement. The deposit had…
Infinity Emporium Company received the monthly statement for its bank account, showing a balance of $67,300 on August 31. The balance in the Cash account in the company's accounting system at that date was $72,628. The company's accountant reviewed the statement and the company's accounting records and noted the following. 1. 2. 3. After comparing the cheques written by the company with those deducted from the bank account in August, the accountant determined that all six cheques (totalling $6,180) that had been outstanding at the end of July were processed by the bank in August. However, five cheques written in August, totalling $4,500, were outstanding on August 31. A review of the deposits showed that a deposit made by the company on July 31 for $11,532 was recorded by the bank on August 1, and an August 31 deposit of $13,300 was recorded in the company's accounting system but had not yet been recorded by the bank. The August bank statement also showed: a service fee of $24 a…
The Seattle First Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following: Deposits in transit on September 30 total $9,850. The bank statement shows a debit memorandum for a check printing charge of $95. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568. Outstanding checks as of September 30 totaled $11,600. Check No. 276 was correctly written and paid by the bank for $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. The bank returned a NSF check in the amount of $1,110. The bank included a credit memorandum for $2,620 representing a…
ठी = =
The following information relates to Cullumber Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $24,490. During the month of July, Cullumber recorded cash receipts of $27,680 and cash payments of $31,200 in the general ledger Cash account. An examination of the company's July bank statement shows a balance of $24, 446 on July 31; outstanding cheques $4, 580; deposits in transit $1,880; EFT collections on account that were not yet recorded on the books $2,700; NSF cheque NSF fee $64; and bank service charges $120. Determine the cash balance per Cullumber Limited's books. Cash balance Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.) CULLUMBER LIMITED Bank Reconciliation July 31
The following information relates to Oriole Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $19,590. During the month of July, Oriole recorded cash receipts of $21,400 and cash payments of $24,300 in the general ledger Cash account. An examination of the company's July bank statement shows a balance of $19,630 on July 31; outstanding cheques $4,000; deposits in transit $1,820; EFT collections on account that were not yet recorded on the books $2,192; NSF cheque $1,248; NSF fee $72; and bank service charges $112. Determine the cash balance per Oriole Limited's books. Cash balance Prepare the bank reconciliation at July 31. (List items that increase balance as per bank & books first.) Add Cash balance per bank Bank service charge Reconciled cash balance per bank Deposits in transit NSF cheque and fee Outstanding cheques EFT collections on account Oriole Limited Bank Reconciliation July 31 $