The cash account for Seal-Tek Co. at December 1, 2006, indicated a balance of $3,945.90. During December, the total cash deposited was $31,077.75, and checks written totaled $30,395.78. The bank statement indicated a balance of $5,465.50 on December 31. Comparing the bank statement, the canceled checks, and the accompanying memorandums with the records revealed the following reconciling items: a) Checks outstanding totaled $3,003.84. b) A deposit of $2,148.21, representing receipts of December 31, had been made too late to appear on the bank statement. c) The bank had collected for Seal-Tek Co. $1,908 on a note left for collection. The face of the note was $1,800. d) A check for $120 returned with the statement had been incorrectly charged by the bank as $1,200. e) A check for $318 returned with the statement had been recorded by Seal-Tek Co. as $138. The check was for the payment of an obligation to Kenyon Co. on account.

The cash account for Seal-Tek Co. at December 1, 2006, indicated a balance of $3,945.90. During December, the total cash deposited was $31,077.75, and checks written totaled $30,395.78. The bank statement indicated a balance of $5,465.50 on December 31. Comparing the bank statement, the canceled checks, and the accompanying memorandums with the records revealed the following reconciling items: a) Checks outstanding totaled $3,003.84. b) A deposit of $2,148.21, representing receipts of December 31, had been made too late to appear on the bank statement. c) The bank had collected for Seal-Tek Co. $1,908 on a note left for collection. The face of the note was $1,800. d) A check for $120 returned with the statement had been incorrectly charged by the bank as $1,200. e) A check for $318 returned with the statement had been recorded by Seal-Tek Co. as $138. The check was for the payment of an obligation to Kenyon Co. on account.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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