HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
7th Edition
ISBN: 9780136505273
Author: MILLER-NOBLES
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 7.36CP
(1)
To determine
To prepare: The
Introduction: The statement through which the company reconciles its bank account balance with that of the financial statement balance is said to be the reconciliation statement.
(2)
To determine
To record: The
Introduction: The statement through which the company reconciles its bank account balance with that of the financial statement balance is said to be the reconciliation statement.
(3)
To determine
To prepare: The checking account.
Introduction: The statement through which the company reconciles its bank account balance with that of the financial statement balance is said to be the reconciliation statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Using the following information, prepare a bank reconciliation for Kingbird Beauty Supply Company for May 31, 2025.
a.
b.
C.
d.
e.
f.
The bank statement balance is $8,280.
The cash account balance is $6,600.
Outstanding checks totaled $1,900.
Deposits in transit are $600.
The bank service charge is $20.
Collection of note by the bank, $400.
Kingbird Beauty Supply Company
Bank Reconciliation
$
$
$
$
This problem has 2 questions:
On February 28, 2020, Jem Company received its bank statement. The chief accountant was in the process of preparing its bank reconciliation for the month. The
following data were made available:
Cash balance, February 28, 2020
Note collected by the bank
Interest earned from the note above
NSF check from customer
Bank service charges on the NSF
Other bank service charges
Deposit of February 28 placed in the night depository
Outstanding checks
Check issued by Rem Company charged to Jem Company by the bank in error
2,190,000
150,000
15,000
195,000
3,000
4,500
127,500
438,000
30,000
What is the unadjusted balance per bank?
Prepare the bank reconciliation for Wilderness Associates at October 31, 2024 using the imformation :
Lori Anders of Wilderness Associates is getting ready to prepare the October bank reconciliationThe cash balance on the books of Wilderness Associates on October 31 is $3,251.Lori reviews the bank statement, and notes the cash balance at October 31 of $2,150. The bank statement also reveals that the bank collected a note receivable on behalf of Wilderness Associates - the principal was $2,050 and the interest was $14. One customer's check for $45 was returned by the bank for insufficient funds. Two additional items on the bank statement were the monthly EFT for the utilities, $365, and the bank service fee of $40. Lori notes that the cash deposit made on October 31 of $3,850 does not appear on the statement, and that three checks totaling $1, 135 had not cleared the bank account when the bank statement was prepared.
the end product should like similar to the same format as the image…
Chapter 7 Solutions
HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
Ch. 7 - Prob. 1QCCh. 7 - Prob. 2QCCh. 7 - Prob. 3QCCh. 7 - Prob. 4QCCh. 7 - Prob. 5QCCh. 7 - Prob. 6QCCh. 7 - Prob. 7QCCh. 7 - Prob. 8QCCh. 7 - Prob. 9QCCh. 7 - Prob. 10QC
Ch. 7 - Prob. 11QCCh. 7 - Prob. 1RQCh. 7 - Prob. 2RQCh. 7 - What are the five components of internal control?...Ch. 7 - Prob. 4RQCh. 7 - What is separation of duties?Ch. 7 - Prob. 6RQCh. 7 - Prob. 7RQCh. 7 - Prob. 8RQCh. 7 - How do businesses control cash receipts by mail?Ch. 7 - Prob. 10RQCh. 7 - Prob. 11RQCh. 7 - Prob. 12RQCh. 7 - Prob. 13RQCh. 7 - Prob. 14RQCh. 7 - Prob. 15RQCh. 7 - Prob. 16RQCh. 7 - Prob. 17RQCh. 7 - Prob. 18RQCh. 7 - Defining internal control Internal controls are...Ch. 7 - Prob. 7.2SECh. 7 - Prob. 7.3SECh. 7 - Prob. 7.4SECh. 7 - Prob. 7.5SECh. 7 - Prob. 7.6SECh. 7 - Prob. 7.7SECh. 7 - Prob. 7.8SECh. 7 - Prob. 7.9SECh. 7 - Prob. 7.10SECh. 7 - Prob. 7.11SECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Evaluating internal control over cash payments...Ch. 7 - Understanding internal control, components,...Ch. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23ECh. 7 - Prob. 7.24APCh. 7 - Prob. 7.25APCh. 7 - Prob. 7.26APCh. 7 - Prob. 7.27APCh. 7 - Prob. 7.28APCh. 7 - Prob. 7.29APCh. 7 - Prob. 7.30BPCh. 7 - Prob. 7.31BPCh. 7 - Prob. 7.32BPCh. 7 - Prob. 7.33BPCh. 7 - Prob. 7.34BPCh. 7 - Prob. 7.35BPCh. 7 - Prob. 7.36CPCh. 7 - Prob. 7.37PSCh. 7 - Prob. 7.2CTDCCh. 7 - Prob. 7.1CTFCCh. 7 - Prob. 7.1CTCA
Knowledge Booster
Similar questions
- BANK RECONCILIATION AND JOURNAL ENTRIES - In the Bank Reconciliation Template, prepare a bank reconciliation and complete the adjusting entries required. Then upload the completed template to the Lab 17 Upload Link. Use the following data that were accumulated for use in reconciling the bank account of Star Battles Restaurant for-October 2020: a. The bank service charge is $70. b. The book balance is $6,100 at October 31, 2020. c. Outstanding checks total $1,300. d. An automatic EFT withdrawal was taken from the account to pay utilities in the amount of $2,700. A check from LukeCo for $3,500 was returned for nonsufficient funds. f The bank received an EFT from Leah Corp and deposited S14,300 in the account. The EFT was from Leah Corp to pay rent. | The bank balance at October 31, 2020 was $9,730. e. h The bank collected a note in the amount of $1,500 deposited the cash in Vader's account at the bank but Vader has not yet entered the amount in the books. The total of $1,500 consists of…arrow_forwardYour friend Steve comes to you for help in preparing his bank reconciliation for his company Steve’s Electronic Shop inc. (“SES”) at the end of the first month of operation in June 2019: He provides you with the following information: Opening Book balance of: $12,423.21 Balance on the June 30th bank statement: $17,743.96 SES pays utilities and Insurance through Electronic Funds Transfers (EFT). For the month of June, the payments were respectively $328 and $145. Steve prepared the June 30th deposit of $1,872 but didn’t make it in time for the bank to record it in June Bank service charge for June was $12.50 Interest earned on checking account for June was $25 and automatically deposited The bank statement shows a deposit of $423 that SES didn’t make. After a call to the Bank Manager, she apologized and told John the error would be corrected in July The following cheques are outstanding as at June 30th: Cheque # Payee Amount 745 Landlord $ 2,100.00 751…arrow_forwardRead and understand the transaction. Prepare a Bank Reconciliation Statement using the following methods: a. Adjusted Method b. Book-to-bank Method c. Bank-to-book Method Use the space provided for each method for you answer. Moonlight Company maintains cash in ODB Bank. The following information was made available for the month of October 2021: • The bank statement at the of the month shows P10,000. • Deposits not yet reflected in the bank statement, P84,000. • Checks issued but not yet encashed by the payees, P65,000. The bank made an error of debiting the account of Moonlight Company, which was actually a debit for Crescent Company, P4,000. • The ledger shows a cash-in-bank balance of P12,000. Notes receivable collected by the bank for Moonlight Company amounted to P16,000. • Interest earned by Moonlight Company from keeping their cash at ODB Bank is P5,000. • ODB Bank charged Moonlight Company P1,000 service charges directly debited to their account as seen in the bank statement. •…arrow_forward
- Buffy's Cash account shows a balance of $16,670 at December 31. On December 31, Buffy Insurance received the following bank statement: (Click the icon to view the December bank statement.) Requirement 1. Prepare the bank reconciliation of Buffy Insurance at December 31, 2024. Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation. Bank: ADD: LESS: Buffy Insurance Bank Reconciliation December 31, 2024 Requirements 1. Prepare the bank reconciliation of Buffy Insurance at December 31, 2024. 2. Journalize any required entries from the bank reconciliation. s example Print Get more help. Done - X Data table Date Dec. 4 $ 9 14 17 31 C Cash Receipts Cash Debit 4,250 490 Cash Payments Check No. 1416 $ 1417 590 1418 1,950 1419 1,840 1420 1421 1422 More info i (Click the icon to view the additional information.) Read the requirements Print Cash Credit 890 210 650 1,190 1,420 1,300 590 Done - a. The EFT credit was a receipt of rent. The EFT debit was an…arrow_forwardPreparing a bank reconciliation and journal entries The August 31 bank statement of Well Healthcare has just arrived from United Bank. To prepare the bank reconciliation, you gather the following data: The August 31 bank balance is $4,540. The bank statement includes two charges for NSF checks from customers. One is for $380 (#1), and the other is for $180 (#2). The following Well Healthcare checks are outstanding at August 31: Check No Amount 237 80$ 288 190 291 570 294 600 295 30 296 70 Well collects from a few customers by EFT. The August bank statement lists a $1,200 EFT deposit for a collection on the account. The bank statement includes two special deposits that Well hasn’t recorded yet: $800 for dividend revenue, and $120 for the interest revenue Well earned on its bank balance…arrow_forwardNatalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month.Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2021 using the following information. GENERAL LEDGER—COOKIE CREATIONS INC. Cash Date Explanation Ref Debit Credit Balance 2021 June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687 8 Check #602 56 2,631 9 1,050 3,681 13 Check #603 425 3,256 20 155 3,411 28 Check #604 297 3,114 28 110 3,224 PREMIER BANKStatement of Account—Cookie Creations Inc.June 30, 2021 Date Explanation Checks and…arrow_forward
- This question requires you to do 2 things. Firstly, prepare the Bank Reconciliation Statement, but then also prepare the journal entries that are needed, in your own books (i.e. the business ledger) to bring your accounts into line with the extra transactions that have occurred in the Bank system. Good luck! E8-9 Preparing a bank reconciliation [10–15 min] Fred Brown operates four bowling alleys. He just received the 30 April bank statement from Citywide Bank and the statement shows an ending balance of $800. Listed on the statement are an EFT rent collection of $400, a service charge of $12, dishonoured cheques totalling $74 and a $9 charge for printed cheques. In reviewing his cash records, Brown identifies outstanding cheques totalling $467 and a deposit in transit of $1788. During April, he recorded a $290 cheque by debiting Salary expense and crediting Cash for $29. Fred Brown's Cash account shows a 30 April balance of $2077. Prepare the bank reconciliation at 30 April. Journalise…arrow_forwardThe cash records and bank statement for the month of July for Eagle Incorporated are shown below. Description DEP Customer deposit INT Interest earned SF Service feesNOTE Note collected CHK Customer check NSF Nonsufficient fundsEFT Electronic funds transfer DC Debit card Additional information: The difference in the beginning balances in the company’s records and the bank statement relates to check number 530, which is outstanding as of June 30, 2024. The debit card transaction for the purchase of equipment on 7/19 is correctly processed by the bank. The EFT on July 26 in the bank statement relates to the purchase of office supplies.arrow_forwardThe bookkeeper for Blossom Manufacturing Ltd. was trying to determine what items would be used in preparing the company's bank reconciliation that she is completing at May 31, 2021, the end of the company's first month of operations. The company's bank statement showed the following: Date May 1 3 5 15 19 21 25 25 27 28 31 BLOSSOM MANUFACTURING LTD. Bank Statement May 31 NSF fee Description Deposit Cheque, No. 001 Cheque, No. 002 Deposit Cheque, No. 004 Cheque, No. 006 Returned cheque-NSF, S. Gillis Cheque, No. 009 Cheque, No. 010 Bank service charges Amounts Deducted from Account (Debits) 1.648 7,277 8,457 1,016 1,377 31 2,173 2,005 43 Amounts Added to Account (Credits) 25,500 4,743 Balance 25,500 23,852 16,575 21,318 12,861 11,845 10,468 10,437 8,264 6,259 6,216 Blossom's summary of cash receipts (which were all deposited) and summary of cheques (which were all mailed out to suppliers) for the month of May showed the following:arrow_forward
- XYZ LLC dealing all its transactions through its bank to avoid employee fraud and theft. For offering daily services,the bank debited OMR 20 to the bank account and the company unaware it.How will you adjust the above reconciliation item in bank reconciliation statement? a. Add OMR 20 to the company's bank statement balance b. Add OMR 20 to the company's cash book balance c. Deduct OMR 20 from company's cash book balance d. Deduct OMR 20 from the company's cash book balancearrow_forwardBank Reconciliation: Complete the bank reconciliation and determine the adjusted book and bank balance for the month of October 2020 for The Balancers Inc. Use the Information below. Include your bank recon in your PDF upload!! 1. The balance on the 10/31 bank statement is $8,000. The balance in the book general ledger for the checking account is $12,500. 2. There were $7,886 in outstanding checks that had not cleared the bank by the end of the month. 3. The was a bank fee of $125 charged on the bank statement that has not been recorded by The Balancers. 4. A customer payment towards AR was returned by the bank as NSF (non sufficient funds) in the amount of $3,279. The Balancers, Inc did not know about this NSF before receiving the bank statement. 5. Check #9876 cleared the bank in the correct amount of $635, but was incorrectly entered into the accounting system as $653. The check was for rent for October. 6. A deposit totaling$9,000 from sales activities on 10/31 was recorded in the…arrow_forwardGiven this book and bank statement information, create an October bank reconciliation for Arrowhead company. And the journal entries required for the book side. BOOK INFO: Cash Date Debit Credit Balance 10/1/2020 Beginning Balance 8,259.86 10/1/2020 Ck 10102 Accounts Payable 1,374.12 6,885.74 10/2/2020 Ck 10103 Rent 3,420.00 3,465.74 10/2/2020 Ck 10104 Utilities 689.00 2,776.74 10/4/2020 Deposit 3,743.10 6,519.84 10/4/2020 Ck 10105 Advertising 344.21 6,175.63 10/4/2020 Ck 10106 Subscription 102.84 6,072.79 10/9/2020 Ck 10107 Internet 74.97 5,997.82 10/9/2020 Deposit 4,859.47 10,857.29 10/9/2020 Ck 10108 Telephone 221.00 10,636.29 10/9/2020 Deposit 11,339.64 21,975.93 10/12/2020 Ck 10109 Accounts Payable 1,680.00 20,295.93 10/13/2020 Ck 10110 Wages…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning