Concept explainers
a)
Nakajima Co. Bank Reconciliation July 31
Cash balance according to the bank statement $25,940
Add: Deposit in transit $4,020
Deduct : Outstanding checks $5,000
Adjusted Balance $24,960
Cash balance according to the company's records $24,640
Add : Error on check $360
Deduct: Service charges $40
Adjusted Balance $24,960
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- Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $22,240. Cash balance according to the bank statement at July 31, $23,450. Checks outstanding, $4,510. Deposit in transit, not recorded by bank, $3,630. A check for $590 in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 b. July 31arrow_forwardThompson Corporation gathered the following reconciling information in preparing its October bank reconciliation: Line Item Description Amount Cash balance per bank, October 31 $15,554 Note receivable collected by bank 4,010 Outstanding checks 7,718 Deposits in transit 5,145 Bank service charge 140 NSF check 1,521 Determine the cash balance per the company’s records (before adjustments). a. $17,903 b. $10,632 c. $12,981 d. $15,330arrow_forwardBank Reconciliation The following data were accumulated for use in reconciling the bank account of Kaycee Sisters Inc. for August 20Y9: a. Cash balance according to the company's records at August 31, $28,730. b. Cash balance according to the bank statement at August 31, $30,200. c. Checks outstanding, $5,830. d. Deposit in transit, not recorded by bank, $4,680. e. A check for $590 in payment of an account was eroneously recorded by Kaycee Sisters Inc. as $950. f. Bank debit memo for service charges, $40. Prepare a bank reconciliation, using the format shown in Exhibit 12. Kaycee Sisters Inc. Bank Reconciliation August 31, 20Y9 Cash balance according to bank statement Adjusted balance Cash balance according to Kaycee Sisters Inc. $ Adjusted balancearrow_forward
- Jamison Company gathered the following reconciling information in preparing its June bank reconciliation. Cash balance per bank, June 30 $10,580 Note receivable collected by bank 5,781 8,771 3,495 127 1,779 Outstanding checks Deposits in transit Bank service charge NSF check Determine the cash balance per company records (before adjustment) on June 30. a. $9,179 b. $22,846 OC. $5,304 d. $1,429arrow_forwardThe phone data where accumulated for use and reconciling the bank account of Mathers Co. For July: 1. Cash balance according to the company's records at July 31st $18,310. 2. Cash balance according to the bank statement at July 31st, $19,360. 3. Checks outstanding, $3,720. 4 . Deposit in transit, not recorded by Bank $2,980. 5. A check for $480 in payment of an account was erroneously record it in the check register as $840. 6. Bank debit memo for service charges, $50. A. Prepare a bank reconciliation, using the format showing in exhibit 14 Mather Co. Bank Reconciliation July 31 ___________________________________________ Cash balance according to bank statement $ _______ _______ ______ Adjusted balance. $_____ Cash balance according to companies records $ ___ ________ ________ Adjusted balance.…arrow_forwardThe bank statement for Jeffrey Co. indicates a balance of $8,785 on October 31. After the journals for October had been posted, the cash account had a balance of $8,998. a. Cash sales of $945 had been erroneously recorded in the cash receipts journal as $495. b. Deposits in transit not recorded by bank, $778. c. Bank debit memo for service charges, $40. d. Bank credit memo for note collected by bank, $23,985 plus $885 interest. e. Bank debit memo for $756 NSF (not sufficient funds) check from Calin Sams, a customer. f. Checks outstanding, $1,860. Record the appropriate journal entries that would be necessary for Jeffrey Co. Record the entry that increases cash first. If an amount box does not require an entry, leave it blank.arrow_forward
- Bank Raconciliation The folowing data were accumudated for use in raconciling the bark account of Mathers Ca. for Juy: 1. Cash balance according to the company's records at July 31, $32,110. 2. Cash balance according to the bank statament at uly 31, $31,350. 3. Checks outstanding, $2,870. 4. Diposit in transik, not recorded by bank, $4,150. S. A check for $170 in payment of an accout was orroneously recorded in the check regite as $710. 6. Bank debit memo for service charges, $20. a Propare a bank reconcilation, uing the format shown in Exhibit 14. Hathers Co. Bark Raconciliation Cash balance according to bark satement Add deposit in transit, not recorded by bank Deduct outstanding chacks Adustad batance Cash balance acording to company's ncords Add error in recording check as $710 instead of $170 Daduct bank service charge Aduilad balane DEVZE Petack YCheck My Wuk . Sup twO u cre for th cRmpa MTUn ad he uher lor he bark bance n Delamne he wf b. If the balarka stdprepur x ott're Must…arrow_forwardDo not give answer in imagearrow_forwardBank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,735. The bank statement indicated a balance of $9,930 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $3,570. A deposit of $3,720, representing receipts from October 31, had been made too late to appear on the bank statement. The bank had collected $1,940 on a note left for collection. The face of the note was $1,840. A check for $550 returned with the statement had been incorrectly recorded by Deaver Consulting as $500. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. A check drawn for $530 had been incorrectly charged by the bank as $30. Bank service charges for October amounted to $45. Instructions: 1. Prepare a bank reconciliation. Deaver…arrow_forward
- Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,370. During May, the total cash deposited was $71,780 and checks written totaled $66,650. The bank statement indicated a balance of $24,330 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $10,840. A deposit of $8,830, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,670 on a note left for collection. The face of the note was $4,310. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. Bank service charges for May amounted to $50. A check for $1,080 from Jennings…arrow_forwardBank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,410. During May, the total cash deposited was $72,900 and checks written totaled $67,690. The bank statement indicated a balance of $24,710 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $11,010. A deposit of $8,970, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,740 on a note left for collection. The face of the note was $4,370. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account. Bank service charges for May amounted to $60. A check for $1,090 from Jennings…arrow_forwardMazaya Company gathered the following reconciling information in preparing its November bank reconciliation: Cash balance per books (11/30) R.O.4,400; Deposits in transit R.O. 6oo; Notes receivable and interest collected by bank R.O. 1,400; Bank charge for check printingarrow_forward
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