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Concept explainers
Wright Company’s Cash account shows a $27,500 debit balance and its bank statement shows $25,800 on
deposit at the close of business on May 31. Prepare its bank reconciliation using the following information.
a. The May 31 bank statement lists $100 in bank service charges; the company has not yet recorded the
cost of these services.
b. Outstanding checks as of May 31 total $5,600.
c. May 31 cash receipts of $6,200 were placed in the bank’s night depository after banking hours and
were not recorded on the May 31 bank statement.
d. In reviewing the bank statement, a $400 check written by Smith Company was mistakenly drawn
against Wright’s account.
e. The bank statement shows a $600 NSF check from a customer; the company has not yet recorded this
NSF check.
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- Wright Company's cash account shows a $30,100 deblt balance and its bank statement shows $28,400 on deposit at the close of business on May 31. a. The May 31 bank statement lists $230 in bank service charges; the company has not yet recorded the cost of these services. b. Outstanding checks as of May 31 total $6,900. c. May 31 cash receipts of $7,500 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement. d. In reviewing the bank statement, a $530 check written by Smith Company was mistakenly drawn against Wright's account. e. The bank statement shows a $340 NSF check from a customer; the company has not yet recorded this NSF check. Prepare its bank reconciliation using the above information. WRIGHT COMPANY Bank Reconciliation May 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance < Prev 5 of 5 Next ...arrow_forwardesc QUESTIONS On May 31, Money Corporation's Cash account showed a balance of $12,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding Deposits outstanding NSF check from a customer Service fees Error: Money Corporation wrote a check for $65 but recorded it incorrectly for $650. What is the amount of cash that should be reported in the company's balance sheet as of May 31? O $10,915 O $12,215 O $11,630 O $12.850 None of the above Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 9 F1 Q A 1 N NO @ 2 39 F2 W S #3 X H aption command 20 F3 E D $ 4 Q F4 C R F 07 dº % 5 e F5 T V MacBook Air ^ 6 G F6 Y B & 7 8 H F7 U * 00 8 N $ 1,450 2,300 240 130 DII F8 J ( 1 9 DD K M ) 0 0 Save All F10 Earrow_forwardBank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $7,745. The bank statement indicated a balance of $9,950 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,580. b. A deposit of $3,730, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $1,940 on a note left for collection. The face of the note was $1,840. d. A check for $550 returned with the statement had been incorrectly recorded by Deaver Consulting as $500. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $560 had been incorrectly charged by the bank as $60. f. Bank service charges for October amounted to $35. Instructions:arrow_forward
- Required information [The following information applies to the questions displayed below.] Organic Food Company's Cash account shows a $6,400 debit balance and its bank statement shows $5,790 on deposit at the close of business on August 31. a. August 31 cash receipts of $2,140 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b. The bank statement shows a $210 NSF check from a customer; the company has not yet recorded this NSF check. c. Outstanding checks as of August 31 total $2,020. d. In reviewing the bank statement, an $170 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $110 in bank service charges; the company has not yet recorded the cost of these services. Prepare a bank reconciliation using the above information. Bank statement balance Add: Deduct: Adjusted bank balance ORGANIC FOOD COMPANY Bank Reconciliation August 31 Book balance…arrow_forwardInstructions The cash account for Norwegian Medical Co. at April 30 indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on April 30. Comparing the bank statement and the accompa canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $34,090. A deposit of $18,430, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $31,779 on a $29,700 note, including interest of $2,079. A check for $1,900 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $190. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $370 had been erroneously charged by the bank as $730. Bank service charges for April amounted to $55. Required Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount…arrow_forwardEntries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: Cash balance according to the company's records at July 31, $25,010. Cash balance according to the bank statement at July 31, $26,060. Checks outstanding, $5,080. Deposit in transit, not recorded by bank, $4,080. A check for $340 issued in payment of an account was erroneously recorded in the check register as $430. Bank debit memo for service charges, $40. Journalize the entries that should be made by the company, part (a) Error and part (b) Service Charge. If an amount box does not require an entry, leave it blank. a. July 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 b. July 31 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12arrow_forward
- Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance according to the company's records at July 31, $22,240. Cash balance according to the bank statement at July 31, $23,450. Checks outstanding, $4,510. Deposit in transit, not recorded by bank, $3,630. A check for $590 in payment of an account was erroneously recorded in the check register as $950. Bank debit memo for service charges, $30. Journalize the entries that should be made by the company, part (A) Error and part (B) Service Charge. a. July 31 b. July 31arrow_forwardNeed answer for this questionarrow_forwardanswer in text form please (without image)arrow_forward
- Need helparrow_forwardB Nolan Company's cash account shows a $22,352 debit balance and its bank statement shows $21,332 on deposit at the close of business on June 30. a. Outstanding checks as of June 30 total $3,713. b. The June 30 bank statement lists $41 in bank service charges; the company has not yet recorded the cost of these services. 2 B c. In reviewing the bank statement, a $90 check written by the company was mistakenly recorded in the company's books as $99. D Od. June 30 cash receipts of $4,724 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement. 5 Required: 5 Prepare a bank reconciliation using the above information. 2 9 D 1 2 B 4 5 5 7 B 9 Deduct: 0 2e. The bank statement included a $23 credit for interest earned on the company's cash in the 8 bank. The company has not yet recorded interest earned. 4 3 (Use cells A2 to H13 from the given information to complete this question.) Bank statement balance Add: Adjusted bank balance E…arrow_forwardOrganic Foods Co's cash account shows a $5,500 debit balance and its bank statement shows $5,160 on deposit at close of business on August 31. Prepare a bank reconciliation using the following information. a) August 31 cash receipts of $1,240 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement. b) The bank statement shows a $120 NSF check from a customer; the company has not yet recorded this NSF check. c) Outstanding checks as of August 31 total $1,120. d) In reviewing the bank statement, an $80 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e) The August 31 bank statement lists $20 in bank service charges; the company has not yet recorded the cost of these services.arrow_forward
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