Using the following information, prepare a bank reconciliation. • Bank balance: $6,788 • Book balance: $6,228 • Deposits in transit: $1,712 • Outstanding checks: $569 and $1,623 • Bank charges: $50 • Bank incorrectly charged the account $50. 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. Bank Reconciliation

Using the following information, prepare a bank reconciliation. • Bank balance: $6,788 • Book balance: $6,228 • Deposits in transit: $1,712 • Outstanding checks: $569 and $1,623 • Bank charges: $50 • Bank incorrectly charged the account $50. 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. Bank Reconciliation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On November 30A, ABC Company received its bank statement. However, the closing balance of the account was unreadable. Attempts to contact the bank after hours did not secure the desired information. The following data are available in preparing a bank reconciliation. October 31 book balance 146,000. Note collected by bank 10, 000. interest earned on note 1,000; NSF check of customer 13,000. Bank service charge on NSF check 200; Other bank service charges 300; Outstanding checks 20, 200; Deposit of October 31 placed in night depository 8,500; Check issued by JKI. Company charged to ABC Co. 2,000; What is the cash balance per bank stament.
1 . Prepare a bank reconciliation given the following information the bank statement shows a balance of $4300 while the general ledger shows a balance of $ 2,900. the deposits outstanding ( in transit) are $2,900. the checks outstanding are $ 550. bank service charge is $50. note receivable collected by the bank is $3,600. interest earned for the month is $ 200.
The bank reconciliation for ABC Inc. at its year-end, December 31, 2022 includes the following: Outstanding checks $761,342.55. Identify all the following procedures that are applicable to the audit of outstanding checks. Check All That Apply Inspect bank credit memos Trace items on the bank reconciliation to the cutoff bank statement. Trace items to cash receipts journal Ascertain reason for unusual delay, if any. Trace items to cash disbursements journal. Inspect bank debit memos.
117) Franklin Company's bank reconciliation as of August 31 is shown below. Bank balance + Deposit in transit Outstanding checks Adjusted bank balance $ 13,162 $ 14,237 +4,500 -3,900 Note collected -50 +1,725 $ 14,837 Adjusted book balance $ 14,837 Book balance Bank service fees A journal entry that Clayborn must record as a result of the bank reconciliation includes: A) Debit Cash $4,500; credit Sales $4,500. B) Debit Cash $1,725; credit Notes Receivable $1,725. C) Debit Cash $50; credit Bank Service Fee Expense $50. D) Debit Miscellaneous Expense $3,900; credit Cash $3,900. E) Debit Notes Receivable $1,725; credit Cash $1,725.
Prepare any necessary journal entries that Organic Food Company must record as a result of preparing the bank reconciliation. Organic Food Company's Cash account shows a $7,200 debit balance and its bank statement shows $6,350 on deposit at the close of business on August 31. August 31 cash receipts of $2,940 were placed in the bank’s night depository after banking hours and were not recorded on the August 31 bank statement. The bank statement shows a $290 NSF check from a customer; the company has not yet recorded this NSF check. Outstanding checks as of August 31 total $2,820. In reviewing the bank statement, an $250 check written by Organic Fruits was mistakenly drawn against Organic Food’s account. The August 31 bank statement lists $190 in bank service charges; the company has not yet recorded the cost of these services.
QUESTION: ON OCTOBER 31, 2015, THE BANK STATEMENT FOR THE CHECKING ACCOUNT OF BLOCKWOOD VIDEO SHOWS A BALANCE OF $12,818, WHILE THE COMPANY S RECORDS SHOW A BALANCE OF $12,326. INFORMATION THAT MIGHT BE USEFUL IN PREPARING A BANK RECONCILIATION IS AS FOLLOWS: A. OUTSTANDING CHECKS ARE $1,225. B. THE OCTOBER 31 CASH RECEIPTS OF $780 ARE NOT DEPOSITED IN THE BANK UNTIL NOVEMBER 2. C. ONE CHECK WRITTEN IN PAYMENT OF UTILITIES FOR $136 IS CORRECTLY RECORDED BY THE BANK BUT IS RECORDED BY BLOCKWOOD AS DISBURSEMENT OF $163. D. IN ACCORDANCE WITH PRIOR AUTHORIZATION, THE BANK WITHDRAWS $449 DIRECTLY FROM THE CHECKING ACCOUNT AS PAYMENT ON A NOTE PAYABLE. THE INTEREST PORTION OF THAT PAYMENT IS $49 AND THE PRINCIPAL PORTION IS $400. BLOCKWOOD HAS NOT RECORDED THE DIRECT WITHDRAWAL. E. BANK SERVICE FEES OF $23 ARE LISTED ON THE BANK STATEMENT. F. A DEPOSIT OF $566 IS RECORDED BY THE BANK ON OCTOBER 13, BUT IT DID NOT BELONG TO BLOCKWOOD. THE DEPOSIT SHOULD HAVE BEEN MADE TO THE CHECKING ACCOUNT…
The bank reconciliation shows the following adjustments: Deposits in transit: $852 Notes receivable collected by bank: $1,000; interest: $20 Outstanding checks: $569 Error by bank: $300 Bank charges: $30 Using the following accounts: Bank Errors Bank Service Charges Cash Deposits in Transit Interest Expense Interest Income Notes Receivable Outstanding Checks prepare the two correcting journal entries: DR [ Select ] ["Cash", "Bank Service Charges", "Interest Income", "Bank Errors", "Interest Expense"] [ Select ] ["$300", "$852", "$30", "$569", "$1,020"] CR [ Select ] ["Bank Errors", "Interest Income", "Bank Service Charges", "Interest Expense", "Cash"] [ Select ] ["$30", "$852", "$569", "$300", "$1,030"] and DR…
Monty Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. Indicate how each would be reported on a bank reconciliation. (a) (b) (c) (d) (e) Deposit in transit $6,820. Bank service charges $42. Interest credited to Monty's account $47. Outstanding checks $9,194. NSF check returned $478.
Assume you are doing a Bank Reconciliation. The bank balance at end of a month is $0 and the Book balance for same date is $150. Based on the the following two partial transactions, find what is the reconciling DIFFERENCE: (a) Bank made an error of $200 by clearing a cheque in the amount of $600 instead of the correct amount of $400. (b) Book also made an error of recording an entry incorrectly, i.e. it recorded a deposit of $50 incorrectly as $125. Please solve this question
While performing its monthly bank reconciliation, XYZ Inc. discovered that it recorded a cash receipt from a customer for an incorrect amount. The company debited “Cash” and credited “Sales Revenue” for $920 instead of $290. On its bank reconciliation, how should the company adjust for this error? Add $630 to the company (book) side. Subtract $630 from the company (book) side. Add $630 to the bank side. Subtract $630 from the bank side.
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The bank reconciliation for Widgets Inc. included the following items: $30 bank service charge; NSF check of $275; bank error of $30; EFT collection from a customer for $2,335. Based on the information, Widgets Inc. will adjust cash by what amount? O $1,480 O $2,030 O $2,000 O $2,060