Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J.P. Morgan Chase presented Hula with its bank statement as follows: The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 bymistake. The check was issued to pay for merchandise purchases. The check appeared on thebank statement correctly.Required:Prepare a bank reconciliation schedule at August 31, 2019, in proper form. Upon receiving the bank statement, Hula's accountants analyzed its cash transactions forpossible reconciling items between its cash balance per books and J.P. Morgan Chase's cashbalance:Checking account balance per Hula's booksOutstanding checks as of August 31Deposit in transit at August 31Error in recording check 9288 issued by Hula$53,4533,7003,94063 Balance, August 31, 2019Service charge for AugustInterest earned during AugustNSF check from Jeffrey Corp. (deposited by Hula)Note ($11,000) and interest ($425) collected for Hula from a customer$64,90010087545011,425

A bank reconciliation report provides a summary of a company's banking and commercial activity that…

Answered: Upon receiving the bank statement,…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter8: Fraud, Internal Controls, And Cash

Section: Chapter Questions

Problem 9EA: Using the following information, prepare a bank reconciliation. Bank balance: $4,587 Book balance:...

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Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J.P. Morgan Chase presented Hula with its bank statement as follows: The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 by
mistake. The check was issued to pay for merchandise purchases. The check appeared on the
bank statement correctly.
Required:
Prepare a bank reconciliation schedule at August 31, 2019, in proper form.

Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for
possible reconciling items between its cash balance per books and J.P. Morgan Chase's cash
balance:
Checking account balance per Hula's books
Outstanding checks as of August 31
Deposit in transit at August 31
Error in recording check 9288 issued by Hula
$53,453
3,700
3,940
63

Balance, August 31, 2019
Service charge for August
Interest earned during August
NSF check from Jeffrey Corp. (deposited by Hula)
Note ($11,000) and interest ($425) collected for Hula from a customer
$64,900
100
875
450
11,425

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