Cottage Co. deposits all cash receipts on the day when they are received and it makes all cash payments by cheque. At the close ofbusiness on December 31, its Cash account shows a debit balance of $18,335. The company's bank statement as of December 31shows an ending cash balance of $15,931. The following information was also available.• Outstanding cheques as of December 31 total $2,266.• Included with the bank statement was a debit memo in the amount of $40 for service charges.• Cheque No. 2519, listed with the canceled cheques, was correctly drawn for $810 in payment of a utility bill on December 16. Thecompany mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $860,• The December 31 cash receipts of $3,440 were placed in the bank's night depository after banking hours and were not recordedon the December 31 bank statement.• The bank deducted $1,240 for an NSF cheque from a customer deposited on December 10. Tme DaiRequired:Prepare the bank reconciliation as of December 31.Cottage Co.Bank ReconciliationAt December 31Updates to Bank StatementUpdates to Company's BooksEnding Cash Balance per Bank StatementEnding Cash Balance per BooksAdditions:Additions:Deductions:Deductions:Up-to-date ending cash balanceUp-to-date ending cash balance< Prev4 of 50Next >

A bank reconciliation statement is the one prepared by the individual or companies to match their…

Required: Prepare the bank reconciliation as of December 31. Cottage Co. Bank Reconciliation At December 31 Updates to Bank Statement Updates to Company's Books Ending Cash Balance per Bank Statement Ending Cash Balance per Books Additions: Additions:

Required: Prepare the bank reconciliation as of December 31. Cottage Co. Bank Reconciliation At December 31 Updates to Bank Statement Updates to Company's Books Ending Cash Balance per Bank Statement Ending Cash Balance per Books Additions: Additions:

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Cottage Co. deposits all cash receipts on the day when they are received and it makes all cash payments by cheque. At the close of
business on December 31, its Cash account shows a debit balance of $18,335. The company's bank statement as of December 31
shows an ending cash balance of $15,931. The following information was also available.
• Outstanding cheques as of December 31 total $2,266.
• Included with the bank statement was a debit memo in the amount of $40 for service charges.
• Cheque No. 2519, listed with the canceled cheques, was correctly drawn for $810 in payment of a utility bill on December 16. The
company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $860,
• The December 31 cash receipts of $3,440 were placed in the bank's night depository after banking hours and were not recorded
on the December 31 bank statement.
• The bank deducted $1,240 for an NSF cheque from a customer deposited on December 10.

Tme Dai
Required:
Prepare the bank reconciliation as of December 31.
Cottage Co.
Bank Reconciliation
At December 31
Updates to Bank Statement
Updates to Company's Books
Ending Cash Balance per Bank Statement
Ending Cash Balance per Books
Additions:
Additions:
Deductions:
Deductions:
Up-to-date ending cash balance
Up-to-date ending cash balance
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