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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Bank reconciliation statement
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education