FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- On April 30, the bank reconciliation of Metlock, Inc. shows three outstanding checks: no. 254, $630; no. 255, $870; and no. 257, $500. The May bank statement and the May cash payments are shown as follows. Date 5/4 5/2 5/17 5/12 5/20 5/29 5/30 Date 5/2 Bank Statement 5/5 5/10 5/15 5/22 5/24 5/29 Checks Paid Check No. 254 257 258 259 261 263 262 Cash Payments Checks Issued 258 259 260 261 262 263 264 Amount Check No. Amount $630 Check No. " 500 289. 215 590 460 770 $289 215 980 590 770 460 Using Step 2 in the reconciliation procedure, list the outstanding checks at May 31. 540 Total $ Amountarrow_forwardRefer to the Information given below: a. The August 31 balance shown on the bank statement is $9,050. b. There is a deposit in transit of $1,300 at August 31. c. Outstanding checks at August 31 totaled $1,620. d. Interest credited to the account during August but not recorded on the company's books amounted to $68. e. A bank charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412 g. The August 31 balance in the general ledger Cash account, before reconciliation, is $8,436. Required: Prepare a bank reconciliation as of August 31 from the above Information. Balance per bank Add: Deduct: Reconciled balance Bank Reconciliation August 31 Balance per books Add: Deduct: Reconciled balancearrow_forwardAnalyze the following errors that appeared on Black Electric’s bank statement and in the accounting records: a. The bank recorded a deposit of $30 as $300. b. The company’s bookkeeper mistakenly recorded a deposit of $250 as $520. c. The company’s bookkeeper mistakenly recorded a payment of $450 received from a customer as $540 on the bank deposit slip. The bank caught the error and made the deposit for the correct amount. d. The bank statement shows a check that was written by the company for $392 was erroneously paid (cleared the account) as $329. e. The bookkeeper wrote a check for $275 but erroneously wrote down $257 as the cash disbursement in the company’s records. Requirement For each error, describe how the correction would be shown on the company’s bank reconciliation.arrow_forward
- Your checkbook balance shows $706.50. The bank statement shows $772.77. The bank paid $2.50 interest. Checks 1501 ($85), 1507 ($50.16), and 1511 ($20.50) are not shown on the statement. A service charge of $5 was levied by the bank. You made an $85 deposit yesterday that is not on the statement. What is the reconciled balance? (Show all work.)arrow_forwardPlease Solve this problemarrow_forwardplease step by step solution.arrow_forward
- . A company's bank statement shows a balance of $10,000, while its cash account in the company's records indicates a balance of $9,500. Upon further analysis, the following discrepancies are identified: Outstanding checks total $1,200. • The bank erroneously recorded a deposit of $500 as $50. • The company recorded a check for $800 as $80. • The bank charged a service fee of $25. Calculate the adjusted cash balance after reconciling these discrepancies. Remember to subtract any outstanding checks and bank errors, and add any unrecorded deposits or adjustments to the cash balance to arrive at the adjusted cash balance.arrow_forwardDemetrio's bank statement showed a balance of $909.27. He had the following outstanding checks: Check 440 for $12.95, Check 441 for $80.25, Check 442 for $10.10, and Check 443 for $28.07. The bank deducted a $15.50 service charge. Demetrio's balance in his checkbook was $793.40. What was the checkbook balance after reconciliation? a. $808.90 b. $777.90 c. $778.00 d. $631.03arrow_forwardThe new balance from a bank statement is $16,835.55. The deposits not yet recorded by the bank are $2058.05, $92.91 and $1052.27. The checks outstanding are $352.85, $188.14, $144.73 and $81.20. Determine the adjusted bank balance.arrow_forward
- Using the following information: The bank statement balance is $3,093. The cash account balance is $3,305. Outstanding checks amounted to $767. Deposits in transit are $815. The bank service charge is $155. A check for $40 for supplies was recorded as $31 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co.Bank ReconciliationAugust 31 Cash balance according to bank statement $fill in the blank 1 Adjustments: $- Select - - Select - Total adjustments fill in the blank 6 Adjusted balance $fill in the blank 7 Cash balance according to company's records $fill in the blank 8 Adjustments: $- Select - - Select - Total adjustments fill in the blank 13 Adjusted balance $fill in the blank 14arrow_forwardUsing the following information: a. The bank statement balance is $5,050. b. The cash account balance is $5,612. c. Outstanding checks amounted to $655. d. Deposits in transit are $1,133. e. The bank service charge is $75. f. A check for $62 for supplies was recorded as $53 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation May 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records $1 Adjustments: Total adjustments Adjusted balance %24 %24 %24 %24arrow_forwardWant Answerarrow_forward
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