FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The following information is available to reconcile Gucci’s book balance of cash with its bank statement
cash balance as of December 31.
a. The December 31 cash balance according to the accounting records is $1,610, and the bank statement
cash balance for that date is $1,900.
b. Gucci’s December 31 daily cash receipts of $800 were placed in the bank’s night depository on
December 31 but do not appear on the December 31 bank statement.
c. Gucci’s comparison of canceled checks with its books shows three checks outstanding: No. 6242 for
$200, No. 6273 for $400, and No. 6282 for $100.
d. When the December checks are compared with entries in the accounting records, it is found that Check
No. 6267 had been correctly drawn (taken from the bank) for $340 to pay for office supplies but was
erroneously entered in the accounting records as $430.
e. The bank statement shows the bank collected a note receivable and increased Gucci’s account for $470.
Gucci had not recorded this transaction before receiving the statement.
f. The bank statement included an NSF check for $150 received from Prada Inc. in payment of its
account. It also included a $20 charge for check printing. Gucci had not recorded these transactions
before receiving the statement.
Required
1. Prepare the bank reconciliation for this company as of December 31.
2. Prepare the
as of December 31.
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