Problem 7 - A Accounting Principles I (ACC 111) Bank Reconciliation (Chapter 7) Homework Problems Bank Reconciliation At September 30, of the current year, the Indigo Company's balance of Cash is $850. The bank's records, on the same date, show a balance of $1,000. The following information is available to reconcile these two balances: a) Indigo made a deposit, on September 30, for $40 that does not appear on the bank statement. # 30 #33 #34 b) The following checks, written by Indigo, have not been cashed by September 30: $ 87 10 25 c) Bank service charges for the month were $13. d) A check written and cashed for $63, to Mahogany Company, was incorrectly recorded by Indigo as $36. The check was payment for supplies on account. e) The bank collected a $90 note receivable from one of Indigo's customers. The principal amount of the note was $60 with an additional $30 included for interest. f) A check written, and recorded, by Indigo for $75 was incorrectly charged by the bank as $57. Requirements: 1) Prepare a bank reconciliation, at September 30 of the current year, in good form. 3 2) Prepare the necessary journal entries at September 30 of the current year.

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Problem 7 - A
Accounting Principles I (ACC 111)
Bank Reconciliation (Chapter 7)
Homework Problems
Bank Reconciliation
At September 30, of the current year, the Indigo Company's balance of Cash is $850. The
bank's records, on the same date, show a balance of $1,000. The following information is
available to reconcile these two balances:
a) Indigo made a deposit, on September 30, for $40 that does not appear on the bank
statement.
#30
#33
#34
b) The following checks, written by Indigo, have not been cashed by September 30:
$ 87
10
25
c) Bank service charges for the month were $13.
d) A check written and cashed for $63, to Mahogany Company, was incorrectly recorded
by Indigo as $36. The check was payment for supplies on account.
e) The bank collected a $90 note receivable from one of Indigo's customers. The principal
amount of the note was $60 with an additional $30 included for interest.
f) A check written, and recorded, by Indigo for $75 was incorrectly charged by the bank as
$57.
Requirements:
1) Prepare a bank reconciliation, at September 30 of the current year, in good form.
3.
2) Prepare the necessary journal entries at September 30 of the current year.
0
Transcribed Image Text:Problem 7 - A Accounting Principles I (ACC 111) Bank Reconciliation (Chapter 7) Homework Problems Bank Reconciliation At September 30, of the current year, the Indigo Company's balance of Cash is $850. The bank's records, on the same date, show a balance of $1,000. The following information is available to reconcile these two balances: a) Indigo made a deposit, on September 30, for $40 that does not appear on the bank statement. #30 #33 #34 b) The following checks, written by Indigo, have not been cashed by September 30: $ 87 10 25 c) Bank service charges for the month were $13. d) A check written and cashed for $63, to Mahogany Company, was incorrectly recorded by Indigo as $36. The check was payment for supplies on account. e) The bank collected a $90 note receivable from one of Indigo's customers. The principal amount of the note was $60 with an additional $30 included for interest. f) A check written, and recorded, by Indigo for $75 was incorrectly charged by the bank as $57. Requirements: 1) Prepare a bank reconciliation, at September 30 of the current year, in good form. 3. 2) Prepare the necessary journal entries at September 30 of the current year. 0
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