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Concept explainers
The accounting records and bank statement of Jeff's Seashell Store provide the following information at the
end of April. The closing 'Cash' account balance was $29000, and the bank statement shows a closing balance
of $31000. On reviewing the bank statement it is found an account customer has deposited $2500 into the bank
account for a March sale and the monthly insurance premium of $550 was automatically charged to the account.
Interest of $1500 was paid by the bank and a bank fee of $50 was charged to the account. A payment of $950
to a supplier has been recorded twice in the accounts. After the calculation of the "ending reconciled cash
balance", what is the balance of the 'cash' account?
A. 33,350
B. None of the other answers
C. 31,450
D. 29,000
E. 35,350
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- Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing its monthly financial statements. The following information is produced by comparing the cash deposits and withdrawals recorded by the business in July with their bank statement received for the month ending 31 July 2021: The bank statement for the month of July shows a credit balance of $112,250 as at 31 July 2021. Safe Security Doors Ltd.’s cash at bank ledger account has a debit balance of $109,230 at 31 July 2021. $7,850 cash received from a customer Adam on 30 July (invoice no. 211) and $11,045 cash received from another customer Brian on 31 July (invoice no. 213) are recorded in the entity’s accounting record but are not shown in the bank statement. Interest earned on bank account is $85. Cheque no. 112 and 113 are not included in the bank statement. # 112 $ 8,045 # 113 $ 6,950 Bank deducted transaction fees of $15 for an overseas transfer by the entity. Safe Security Doors…arrow_forwardOn April 3, Erin Gardner received her bank statement showing a balance of $2,086.93. Her checkbook showed a balance of $1,912.47. Outstanding checks were $234.15, $317.80, $78.10, $132.42, and $212.67. The account earned $20.43. Deposits in transit amount to $814.11, and there is a service charge of $7.00. Use the form below to calculate the reconciled balance. CHECKBOOK BALANCE Add: Interest Earned & Other Credits SUBTOTAL Deduct: Service Charges & Other Debits ADJUSTED CHECKBOOK BALANCE tA ta ta ta tA STATEMENT BALANCE Add: Deposits in Transit SUBTOTAL Deduct: Outstanding Checks LA tA ·SA $ LA ADJUSTED STATEMENT BALANCE $ LA Earrow_forwardBourne Incorporated reports a cash balance at the end of the month of $2,620. A comparison of the company's cash records with the monthly bank statement reveals several additional cash transactions: bank service fees ($85), an NSF check from a customer ($350), a customer’s note receivable collected by the bank ($1,000), and interest earned ($35). Required: Record the necessary entries to adjust the balance of cash. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2 Service Fee Expense selected answer correct 85 selected answer correct Notes receivable incorrect answer please help me finish the problem i keep getting stuck. Its not -85 for credit and its not -35 so what is itarrow_forward
- Spielberg Company’s general ledger shows a cash account balance of $23,220 on July 31, 2024. Cash sales of $1,885 for the last three days of the month have not yet been deposited. The bank statement dated July 31 shows bank service fees of $55 and an NSF check from a customer of $250. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,460. The bank statement shows a balance of $22,490 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct balance of cash on July 31, 2024. 2. Record the necessary entry(ies) to adjust the balance for cash.arrow_forwardJW Company’s cash balance at the end of the month was $4,500. After comparing the company’s records with the monthly bank statement, JW’s accountant identified the following reconciling items: outstanding checks, $800; deposits in transit, $700; bank service charge, $30; NSF check, $200. The cash receipt of the NSF check was previously wrongly recorded by the JW company as $250. What is the adjusted bank balance? (Assumption, no fraud in this case)arrow_forwardOn July 31, 2022, Carla Vista Co. had a cash balance per books of $6,335.00. The statement from Dakota State Bank on that date showed a balance of $7,885.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $19.00. 2. The bank collected $1,715.00 from a customer for Carla Vista Co. through electronic funds transfer. 3. The July 31 receipts of $1,394.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31. 4. Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $347.00. 5. Checks outstanding on July 31 totaled $2,046.10. 6. On July 31, the bank statement showed an NSF charge of $770.00 for a check received by the company from W. Krueger, a customer, on account.…arrow_forward
- You are the bookkeeper of Mel Traders. You undertake a bank reconciliation at the end of every month. Mel Traders received its bank statement for the month ending 31 May 2021. The bank reconciliation at the end of April showed a deposit in transit of $11,700 and two outstanding cheques (no. 663 for $3,060and no. 671 for $6,300). The adjusted cash balance in the entity’s records was $106,305 debit at the end of April. Below are theentity’s May bank statement and the entity’s book records that indicate the deposits made and cheques written during the month of May: AU Bank - Bank Statement For the period 01/05/2021 – 31/05/2021 Mel Traders Dr Cr Balance $ Balance brought forward 103,965 CR 1 May Deposit 11,700 115,665 CR 3 May Deposit 10,620 126,285 CR May Cheque # 682 4,680 121,605 CR 6 May Deposit 6,120 127,725 CR 8 May # 671 6,300 121,425 CR…arrow_forwardThe LLYOD bank statement for the month of June shows that there is $13,300 difference with the cash balance per book. The difference occurs on the 12 of June as one of the customers’ outstanding check has been returned because of not sufficient fund. Record the required entries at the end of June.arrow_forwardAccompanying a bank statement for Santee Company is a credit memo for $24,516 representing the principal ($22,700) and interest ($1,816) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Required: On March 1, journalize the entry that should be made by the company to bring the accounting records up to date. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.arrow_forward
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