Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 4, Problem 58APSA
1.
To determine
To prepare: A bank reconciliation.
Introduction:.Bank reconciliation is a process in which, bank account which is prepared in the books of company and is compared with the bank statement issued by bank. The difference in balances is then adjusted by recording appropriate
2.
To determine
To prepare:
Introduction: Journal entries provide a record of the financial activities undertaken within an organization. Journal entries helps in preparation of financial statements of a company.
3.
To determine
The cash balance to be reported on the
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QUESTION 8
You are provided with information relating to Umdoni Stores.
The following information appeared in the Bank Reconciliation Statement of Umdoni Stores on 30 September 20.19:
Balance per bank statement
R5 000 Debit
7.
An EFT payment made by a receivable for R4 300 on 31
October 20.19 appeared in the bank statement but not in the
Balance per Cash Book
R6 500 credit
October Cash Book.
Outstanding deposit dated 30 September 20.19
R20 500
On comparing the September bank Reconciliation statement, the October bank statement and the Cash Book for October,
the following was noted:
To reconcile the balance of the Cashbook with the balance of the Bank statement on 31 October, the R4 300 deposit (no. 7)
must be recorded as follows:
In the debit column of the Bank reconciliation statement as R4 300
O In the credit column of the Bank reconciliation statement as R4 300
Not recorded in the Bank account or the Bank reconciliation statement
On the debit side of the Bank account as R4 300
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Ex 8-12 Prepare bank reconciliation and adjusting entries
The information below relates to the Cash account in the ledger of Quicksilver Company.
Balance July 1-$20,530, Cash deposited - $61,250.
Balance July 30-$22,200; Checks written - $59,580.
The July bank statement shows a balance of $23,450 on July 30 and the following memoranda.
Credits
Collection of $3,850 note plus interest $50
Interest earned on checking account
Debits
$3,900
$200
NSF check: Dr. Fate
Safety deposit box rent
$630
$270
At July 30, deposits in transit were $6,275 and outstanding checks totaled $4,625.
Instructions:
(a)
Prepare the bank reconciliation at July 30
(b)
Prepare the adjusting entries at July 30, assuming (1) the NSF check was from a
customer on account, and (2) no interest had been accrued on the note.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?".
(e)
QUICKSILVER COMPANY
Bank…
PA 11. LO 8.6 Inner Resources Company received the following bank statement. Using the information from
Exercise 8.5 and Exercise 8.6, prepare the bank reconciliation.
Beginning Balance
Bank Statement
$0
AD
A.
D.
Deposits
$8,500
1,200
Checks
101
$ 650
102
550
103
180
106
457
Bank service charges
100
Total
9,700
1,937
Ending Balance
$7,763
PA 12. LO 8.6 Prepare the journal entry required to reconcile the book balance to the bank balance.
Chapter 4 Solutions
Cornerstones of Financial Accounting
Ch. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQCh. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQ
Ch. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 18DQCh. 4 - Prob. 19DQCh. 4 - Prob. 20DQCh. 4 - Prob. 21DQCh. 4 - Prob. 22DQCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Which of the following is not one of the five...Ch. 4 - Prob. 4MCQCh. 4 - The internal audit function is part of what...Ch. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Which one of the following would not appear on a...Ch. 4 - Prob. 10MCQCh. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Prob. 13MCQCh. 4 - Prob. 14MCQCh. 4 - Prob. 15MCQCh. 4 - Prob. 16CECh. 4 - Prob. 17CECh. 4 - Cornerstone Exercise 4-18 Adjusting Entry from...Ch. 4 - Prob. 19CECh. 4 - Prob. 20CECh. 4 - Cornerstone Exercise 4-21 Cash Over and Short On a...Ch. 4 - Cornerstone Exercise 4-22 Cash Over and Short...Ch. 4 - Prob. 23CECh. 4 - Prob. 24CECh. 4 - Prob. 25BECh. 4 - Prob. 26BECh. 4 - Prob. 27BECh. 4 - Prob. 28BECh. 4 - Prob. 29BECh. 4 - Prob. 30BECh. 4 - Prob. 31BECh. 4 - Prob. 32BECh. 4 - Prob. 33BECh. 4 - Prob. 34BECh. 4 - Prob. 35BECh. 4 - Prob. 36BECh. 4 - Prob. 37BECh. 4 - Prob. 38BECh. 4 - Prob. 39ECh. 4 - Prob. 40ECh. 4 - Prob. 41ECh. 4 - Prob. 42ECh. 4 - Miller Enterprises deposits the cash received...Ch. 4 - Prob. 44ECh. 4 - Prob. 45ECh. 4 - Prob. 46ECh. 4 - Prob. 47ECh. 4 - Hawk Enterprises identified the following items on...Ch. 4 - Prob. 49ECh. 4 - Prob. 50ECh. 4 - Prob. 51ECh. 4 - Prob. 52ECh. 4 - Prob. 53ECh. 4 - Exercise 4-54 Operating Cycle and Current...Ch. 4 - Prob. 55APSACh. 4 - Prob. 56APSACh. 4 - Prob. 57APSACh. 4 - Prob. 58APSACh. 4 - Prob. 59APSACh. 4 - Prob. 60APSACh. 4 - Prob. 61APSACh. 4 - Prob. 55BPSBCh. 4 - Prob. 56BPSBCh. 4 - Prob. 57BPSBCh. 4 - Prob. 58BPSBCh. 4 - Prob. 59BPSBCh. 4 - Prob. 60BPSBCh. 4 - Prob. 61BPSBCh. 4 - Prob. 62.1CCh. 4 - Prob. 62.2CCh. 4 - Prob. 62.3CCh. 4 - Prob. 62.4CCh. 4 - Prob. 63.1CCh. 4 - Prob. 63.2CCh. 4 - Prob. 64.1CCh. 4 - Prob. 64.2CCh. 4 - Prob. 65CCh. 4 - Prob. 66.1CCh. 4 - Prob. 66.2CCh. 4 - Prob. 67.1CCh. 4 - Prob. 67.2CCh. 4 - Prob. 68.1CCh. 4 - Prob. 68.2CCh. 4 - Prob. 68.3CCh. 4 - Prob. 68.4CCh. 4 - Prob. 69.1CCh. 4 - Prob. 69.2CCh. 4 - Prob. 69.3CCh. 4 - Prob. 69.4CCh. 4 - Case 4-70 CONTINUING PROBLEM: FRONT ROW...Ch. 4 - Prob. 70.2CCh. 4 - Prob. 70.3CCh. 4 - Prob. 70.4C
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- Calculator chapter 8 eBook The following June 30 bank reconciliation was prepared for Poway Co. Poway Co. Bank Reconciliation For the Month Ended June 30 $16,185 Cash balance according to bank statement Add outstanding checks: $575 No. 1067 470 1106 1.050 1110 910 3,005 1113 $19,190 6,600 Deduct deposit of June 30, not recorded by bank 512,590 Adjusted balance $8,985 Cash balance according to company's records Addı Proceeds of note collected by banki Principal $6,000 Interest 300 $6,300 Service charges 15 6,315 $15.300 0685 5,400 Deduct: Check returned because of Insufficient funds Error in recording June 17 deposit of S7.150 as 31,750 6,290 s 9,010 Adjusted belance a. Identfy the errors in the above bank reconci lation. Check My Work Assignment Score: 45.08% Type here to searcharrow_forwardBANK STATEMENT Date Checks Deposits Other Balance $ 48,000 40, 380 67,830 53,930 ৪9,938 ৪৪, 978 88,470 88,520 88,370 Dec. 1 $ 7,620 550 $28, 0e 13,900 11 17 23 36, e00 26 960 30 19,200 19, e00 NSF* $300 Interest earned Service charge 31 50 31 150 NSF check from J. Left, a customer. Cash (A) Dec. 1 Balance 48, 000 Deposits Checks written during December: 7,620 550 28, e00 36, 000 19,000 13,e00 Dec. 11 23 13,900 960 30 31 150 19, 200 4,500 Dec. 31 Balance 97,128 There were no deposits in transit or outstanding checks at November 30. 4. Prepare any journal entries that the company should make as a resuit of the bank reconciliatio transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet B C D E A Record the interest of $50 received from the bank. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journalarrow_forwardQuestion Week 3 Bank Reconciliation Homework 2 PR.05.01 PR.05.03 Hide or show questions Progress:2/2 items eBook Bank Reconciliation and Entries The cash account for Highlander Diamond Co. on April 1, 20Y5, indicated a balance of $35,400. During April, the total cash deposited was $120,255, and checks written totaled $109,200. The bank statement indicated a balance of $60,927 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $21,450. A deposit of $13,913, representing receipts of April 30, had been made too late to appear on the bank statement. A check for $710 had been incorrectly charged by the bank as $170. A check for $220 returned with the statement had been recorded by Highlander Diamond Co. as $2,200. The check was for the payment of an obligation to Dirt Dog Inc. on account. The bank had collected for Highlander Diamond…arrow_forward
- Question 25 December 3, you received your bank statement showing a balance of $5,055.06. Your checkbook shows a balance of $5,221.98. Outstanding checks are $934.22, $1,579.99, and $1,112.45. The account earned interest of $146.05. Deposits in transit amount to $3,931.63, and there is a service charge of $8.00. Calculate the reconciled balance. Use the following format on a separate sheet of paper to calculate the adjusted checkbook balance and adjusted statement balance. Respond with the adjusted amount only. There is no need to provide the reconciliation on the assignment or space provided. CHECKBOOK BALANCE Add: Interest Earned & Other Credits SUBTOTAL Deduct: Services Charges & Other Debits ADJUSTED CHECKBOOK BALANCE STATEMENT BALANCE Add: Deposits in Transit SUBTOTAL Deduct Outstanding Checks ADJUSTED STATEMENT BALANCEarrow_forwardUse the following bank statement and T-account to identify outstanding deposits that should be included in the May 31 bank reconciliation. Date May 11 May 4 May 12 May 28, May 30 May 31 May 11 May 3 May 29 May 30 May 31 #2 #4 #5 #6 #8 Debit ESCUCC Outstanding Deposits Checks $ 10 100 20 15 55 Cash (A) 200 50 200 150 305 BANK STATEMENT Deposits $50 200 NSF check Other Service charge Credit 10 May 3 #2 70 May 4 #3 100 May 884 20 May 11 #5 15 May 21 #61 25 May 29 87 55 May 30 8 $50 5 Balance $ 200 240 90 70 255 195arrow_forwardWeek 3 Bank Reconciliation Homework 2 PR.05.01 PR.05.03 Hide or show questions Progress:2/2 items eBook Bank Reconciliation and Entries The cash account for Highlander Diamond Co. on April 1, 20Y5, indicated a balance of $35,400. During April, the total cash deposited was $120,255, and checks written totaled $109,200. The bank statement indicated a balance of $60,927 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $21,450. A deposit of $13,913, representing receipts of April 30, had been made too late to appear on the bank statement. A check for $710 had been incorrectly charged by the bank as $170. A check for $220 returned with the statement had been recorded by Highlander Diamond Co. as $2,200. The check was for the payment of an obligation to Dirt Dog Inc. on account. The bank had collected for Highlander Diamond $6,480 on a…arrow_forward
- Problem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 Skip to question [The following information applies to the questions displayed below.]The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31. On July 31, the company’s Cash account has a $25,361 debit balance, but its July bank statement shows a $27,223 cash balance. Check Number 3031 for $1,310, Check Number 3065 for $431, and Check Number 3069 for $2,078 are outstanding checks as of July 31. Check Number 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260. The July bank statement shows the bank collected $6,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this…arrow_forwardProblem 6-4A (Algo) Preparing a bank reconciliation and recording entries LO P3 Skip to question [The following information applies to the questions displayed below.]The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31. On July 31, the company’s Cash account has a $25,361 debit balance, but its July bank statement shows a $27,223 cash balance. Check Number 3031 for $1,310, Check Number 3065 for $431, and Check Number 3069 for $2,078 are outstanding checks as of July 31. Check Number 3056 for July rent expense was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,260. The July bank statement shows the bank collected $6,500 cash on a note for Branch. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 NSF check. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this…arrow_forwardPLEASE ANSWER ASAP Problem No. 2 The following information pertains to AACA Corp.: AACA Corp. BANK RECONCILIATION November 30, 2022 Balance per bank statement P435,000 Less: Outstanding checks No. 4321 P 6,000 4329 15,000 4340 1,700 4341 4,675 27,375 P407,625 Add: Deposit in transit 16,200 Balance per books P423,825 Check Register December 2022 Date Payee No. Voucher Payable Discount Cash Dec. 1 Earl Inc. 4342 P10,000 P500 P9,500 3 JonJon Co. 4343 4,200 - 4,200 7 Aldous Corp. 4344 3,755 - 3,755 12 Von Company 4345 12,000 120 11,880 15 Payroll 4346 96,000 - 96,000 16 Abraham Co. 4347 6,300 - 6,300 18 Rian Corp. 4348 14,200 142 14,058 21 Mark, Inc. 4349 7,000 - 7,000 22 Petty cash fund 4350 10,000 -…arrow_forward
- QUESTION 6 You are provided with information relating to Umdoni Stores. The following information appeared in the Bank Reconciliation Statement of Umdoni Stores on 30 September 20.19: Balance per bank statement R5 000 Debit 5. Service fees of R350 appeared on the bank statement but not in the Cashbook. Balance per Cash Book R6 500 credit Outstanding deposit dated 30 September 20.19 R20 500 On comparing the September bank Reconciliation statement, the October bank statement and the Cash Book for October, the following was noted: To reconcile the balance of the Cashbook with the balance of the Bank statement on 31 October, the service fees of R350 (no. 5) must be recorded as follows: On the credit side of the Bank account as R350 O In the debit column of the Bank reconciliation statement as R350 O In the credit column of the Bank reconciliation statement as R350 On the debit side of the Bank account as R350 Not recorded in the Bank account or the Bank reconciliation statementarrow_forwardP4.4B The August 31 bank statement of Palm Harbor Apartments has just arrived from Florida First Bank To prepare the Palm Harbor bank reconciliation, your gather the following data: a Palm Harbor's Cash account shows a balance of $3,366.14 on August 31 b. The August 31 bank balance is $4,484 22 E The bank statement shows that Palm Harbor earned $38 19 of interest on its bank bal- ance during August. This amount was added to Palm Harbors bank balance d. Palm Harbor pays utilities ($750) and insurance ($290) by EFT e. The following Palm Harbor checks did not clear the bank by August 31 Check No. Amount 237 $ 46.10 288 141 00 291 293 578.05 11.87 609 51 294 8.88 295 296 101 63 * The bank statement includes a deposit of $891.17, collected by the bank on behalf of Paim Harbor Apartments Of the total, $811 81 is collection of a note receivable, and the remainder is interest revenue. * The bank statement lists a $10.50 bank service charge OAugust 31, the Palm Harbor treasurer deposited…arrow_forwardс D E G H 1 Using the Cash T-Account and Bank Statement below, complete the Bank Reconciliation. 2 *On October 14th a check was deposited by a supplier to pay for an account payable and the amount was $76.00, not $67.00. NASSTHANASASAANN 3 4 5 6 7 8 9 13-Oct 10 14-Oct 11 18-Oct 12 26-Oct 13 28-Oct 14 31-Oct $ 830.00 $ 698.00 15 16 17 18 19 20 21 Cash T-Account 475.00 22 1-Oct $ 4-Oct 9-Oct $ 120.00 $ 40.00 $ 45.00 $ 67.00 $ 65.00 $35.00 $ 475.00 October Bank Statement Opening Balance Deposits Withdrawls Total Withdrawls Other Charges EFT (Wages) Service Charge Closing Balance $ 475.00 $ 120.00 $ 40.00 $ 45.00 $ 76.00 $ 65.00 $ 226.00 $ 30.00 $ 45.00 $ 294.00 Question 1 Bank Side Opening Balance End Balance Book Side Opening Balance End Balance Bank Reconciliation H 1% 2% 2% 2% 1% 1% 2% 2% 3% 1%arrow_forward
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Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
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