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A) Prepare a bank reconciliation for the Daenerys company at April 30. (B) Prepare the adjusting entries necessary as a result of the bank reconciliation.

A) Prepare a bank reconciliation for the Daenerys company at April 30. (B) Prepare the adjusting entries necessary as a result of the bank reconciliation.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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(A) Prepare a bank reconciliation for the Daenerys company at April 30.

(B) Prepare the adjusting entries necessary as a result of the bank reconciliation. 

The Daenerys Company's bank statement for the month of April showed a balance per bank of $6,100. The company's Cash account in the general ledger had a balance of $4,759 at April 30. Other information is as follows: (1) Cash receipts for April 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for cheque printing charges. (3) Cheque No. 119 payable to Jorah Company was recorded in the cash payments journal for $248 and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Jorah Company and that the payment to them should have been for $284. (4) The total amount of cheques still outstanding at April 30 amounted to $5,800. (5) Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490. (6) The bank returned an NSF cheque from a customer for $560. (7) The bank included a credit memorandum for $2,060 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000 and interest was $60. Interest has not been accrued.
Transcribed Image Text:The Daenerys Company's bank statement for the month of April showed a balance per bank of $6,100. The company's Cash account in the general ledger had a balance of $4,759 at April 30. Other information is as follows: (1) Cash receipts for April 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for cheque printing charges. (3) Cheque No. 119 payable to Jorah Company was recorded in the cash payments journal for $248 and cleared the bank for $248. A review of the accounts payable subsidiary ledger shows a $36 credit balance in the account of Jorah Company and that the payment to them should have been for $284. (4) The total amount of cheques still outstanding at April 30 amounted to $5,800. (5) Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490. (6) The bank returned an NSF cheque from a customer for $560. (7) The bank included a credit memorandum for $2,060 which represents collection of a customer's note by the bank for the company; principal amount of the note was $2,000 and interest was $60. Interest has not been accrued.
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