FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
eBook
Chapter 4
Critical Thinking Case 2
Reconciling the Wells' Checking Account
Vivian and Rowen Wells are college students who opened their first joint checking account at the American Bank on September 14, 2020. They've just received their first bank statement for the period ending October 5, 2020. The statement and checkbook ledger are shown in the table below.
From this information, prepare a bank reconciliation for the Wells family as of October 5, 2020,
Given your answer to Question 1, determine what, if any, adjustment will the Wells family need to make in their checkbook ledger. Enter the answers as positive value. Round the answer to the nearest cent.
$
If the Wells family earned interest on their idle balances because the account is a
The effect of the interest earnings would have been a(n) -Select-decreaseincreaseItem 19 in both bank and checkbook balances.
Explain.
The input in the box below will not be graded, but may be reviewed and considered by your instructor.
Transcribed Image Text:VIVIAN AND
ROWEN
WELLS
2128 E.
ARBOR ST.
DENVER,
COLORADO
THE
AMERICAN
BANK
800-000-
0000
STATEMENT
PERIOD SEPT.
6- ОСТ. 5,
2020
Total
Checks/
Withdrawals
for Period
Opening
Balance
Ending
Balance
Total
Deposits
for
Period
$0.00
$1,681.60
$1,283.86
$397.74
Date
Withdrawals
Deposits
(Credits)
Balance
(Debits)
Sept. 14
$500.00 $500.00
Sept. 15
597.00
1,097.00
Sept. 25
$145.20
59.25
1,011.05
Oct. 1
525.35
1,536.40
Oct. 1
3.00 ВС
1,533.40
Oct. 4
165.90
$149.76
$145.00
1,072.74
Oct. 5
675.00
379.74
DM=Debit
Memo
RT=Returned
BC=Bank
Check
Charges
CM=Credit
Memo
FC=Finance
Charges
Checkbook
Ledger
Check
Number
Date
2020
Check
Amount Amount Balance
Deposit Account
Details
$500.00 $500.00
Sept.
14
Cash-gift from
birthday
Rowen's wages
Sept.
15
597.00
1,097.00
101
$145.20
Sept.
24
Kroger's-groceries
951.80
Sept.
27
Telephone bill
102
58.20
893.60
Oct. 1
Rowen's wages
525.35
1,418.95
Oct. 1
Univ. Bk. Sto.-
college books
103
165.90
1,253.05
104
Oct. 1
Walmart-sewing
material
36.85
1,216.20
R. Ellis-apartment
rent
105
Oct. 1
675.00
541.20
Oct. 2
Anthem-health
insurance
230.00
106
311.20
107
Oct. 3
Kroger's-groceries
149.76
161.44
Oct. 4
Cash: gas,
entertain., laundry
108
145.00
16.44
Oct. 5
Vivian's salary
635.00
651.44
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
Knowledge Booster
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
- The U.S. Chamber of Commerce provides a free monthly bank reconciliation template at business.uschamber.com/tools/bankre_m.asp. Paula Hein just received her bank statement notice online. She wants to reconcile her checking account with her bank statement and has chosen to reconcile her accounts manually. Her checkbook shows a balance of $698. Her bank statement reflects a balance of $1,348. Checks outstanding are No. 2146, $25; No. 2148, $58; No. 2152, $198; and No. 2153, $464. Deposits in transit are $100 and $50. There is a $15 service charge and $5 ATM charge in addition to notes collected of $50 and $25. Reconcile Annie's balances. BANK RECONCILIATION Annie's checkbook balance Bank balance Add: Add: Subtotal Subtotal Deduct: Deduct: Subtotal Reconciled balance Reconciled balance aw 4 of 15arrow_forwardTable 2: Deposit Slip CHECKING DEPOSIT Name: Jamal Houston Date: May 17, 2021 Account Number: 1234 5678 9012 16. How much in checks are being deposited in the deposit slip above? C H E S CURRENCY COINS 2-36 8-97 10-87 SUBTOTAL LESS CASH TOTAL DEPOSIT DOLLARS CENTS 345 00 0 58 55 20 125 61 92 18 75 00 17. What is the total deposit amount in the deposit slip above?arrow_forwardeBook Using the following information, prepare the journal entries to reconcile the bank statement. Bank balance: $6,788 Book balance: $8,393 Deposits in transit: $1,735 Outstanding checks: $579 and $1,523 Bank service charges: $25 Bank incorrectly charged the account $25. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense.arrow_forward
- CHAPTER : BANK RECONCILIATIONarrow_forwardi need the answer quicklyarrow_forwardAttached is some information about DGA Groceries. Use this information to prepare a bank reconciliation for April 30, 2020. Bank of Edmonton Downtown Edmonton, Alberta, Canada Bank Statement Period: Apr 1 - 30, 2020 Client Name DCA Groceries Account Number 7800-7802364 Description Deposit Withdrawal Date Balance Balance Forward 1-Apr-20 15,032.00 Cheque#7801010 200.00 1-Apr-20 14,832.00 EFT 2,900.00 1-Apr-20 17,732.00 Cheque Deposit 1,800.00 2-Apr-20 19,532.00 Cheque Deposit 800.00 3-Apr-20 20,332.00 Cheque#7801012 1,500.00 3-Apr-20 18,832.00 Cheque#7801013 1,912.00 3-Apr-20 16,920.00 Checque Deposit 13,200.00 3-Apr-20 30,120.00 Cheque#7801014 110.00 6-Apr-20 30,010.00 Cash Withdrawal 100.00 7-Apr-20 29,910.00 Cash Deposit 1,275.00…arrow_forward
- The problem below with Corrected Bank reconciliationarrow_forwardInstructions: Prepare a bank reconciliation for Kali Loli from the following checkbook records and bank statement CHECKBOOK Check number 801 802 803 804 805 Date Description fo transaction 44835 H&H Jewelers 44840 Deposit 44842 L.L. Bean 44844 Cashe 44847 Deposit 44847 Four Seasons Hotel 44849 American Express 44854 ATM Withdrawal 44858 Deposit 44861 Deposit 44862 Home-Depot - Debit Card BANK STATEMENT Statement Date: Checking Account Summary: Account Number: Checking Account Transactions Date Amount 44837 44840 44844 44847 44849 44851 44856 44858 44862 44864 BANK RECONCILIATION Check book balance. Amount of payment or withdrawal Amount of deposit or interest Balance Forward 879.36 November 3, 2021 October 1- 31, 2021 449-56-7792 Previous Balance Deposits Number Total Credits ✓ Check Number Total Debits Current Balance → 879.36 3 1954.59 7 1347.83 1486.12 Description 236.77 Check # 801 450.75 Deposit 324.7 Returned item 880.34 EFT payroll deposit 75.89 Check #803 507.82 Check #805…arrow_forwardPlease help me solvearrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education