At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at December 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Amount Date 12-4 238 $1,330.00 $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 12-1 12-8 $11.00 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 12-10 12-8 241 12-15 12-16 243 12-21 244 12-27 12-26 $830.00 246 12-30 12-29 $2,250.00 $180.00 248 12-29 12-30 249 12-31 $2,910.00 $16,470.00 250 12-31 $9,751.00 Total Total (ii) The cash records per books for December showed the followings. Cash Payments Journal Amount $ 921.00 Number Date Amount Number Date 245 12-20 $1,500.00 $1,100.00 238 12-1 $830.00 246 12-22 239 12-2 $6,750.00 $2,250.00 247 12-23 $420.00 240 12-2 248 12-24 $4,800.00 $2,796.00 $2,200.00 241 12-4 $180.00 249 12-30 242 12-8 $2,370.00 250 12-30 243 12-10 $26.817.00 Total $700.00 244 12-17 Cash Receipts Journal Amount Date $1,330.00 $11.00 12-1 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30.067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total (iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. Prepare the reconciling journal entries according to the reconciliation in part (a). b)

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Internal Control And Cash
Section: Chapter Questions
Problem 21E
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Please help.me to do part a and b. Thank you for your help

At December 31 2019, according to the records of Graser Company, the balance of Cash account
was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare
the bank reconciliation of Graser Company at December 31, using the following supplementary
information:
(i)
The December 31 bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date
Number
Amount
Amount
Date
12-4
238
$1,330.00
$1,500.00
$1,100.00
$4,800.00
$2,200.00
$700.00
12-1
12-8
$11.00
239
12-4
$1,165.00
$1,472.00
$1,745.00
$1,367.00
$1,636.00
$1,025.00
12-10
12-8
241
12-15
12-16
243
12-21
244
12-27
12-26
$830.00
246
12-30
12-29
$2,250.00
$180.00
248
12-29
12-30
249
12-31
$2,910.00
$16,470.00
250
12-31
$9,751.00
Total
Total
(ii) The cash records per books for December showed the followings.
Cash Payments Journal
Amount
$ 921.00
Number
Date
Amount
Number
Date
245
12-20
$1,500.00
$1,100.00
238
12-1
$830.00
246
12-22
239
12-2
$6,750.00
$2,250.00
247
12-23
$420.00
240
12-2
248
12-24
$4,800.00
$2,796.00
$2,200.00
241
12-4
$180.00
249
12-30
242
12-8
$2,370.00
250
12-30
243
12-10
$26.817.00
Total
$700.00
244
12-17
Cash Receipts Journal
Amount
Date
$1,330.00
$11.00
12-1
12-4
$1,165.00
$1,472.00
$1,745.00
$1,367.00
$1,636.00
$1,025.00
$20,316.00
$30.067.00
12-8
12-16
12-21
12-26
112-29
12-30
12-31
Total
Transcribed Image Text:At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at December 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Amount Date 12-4 238 $1,330.00 $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 12-1 12-8 $11.00 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 12-10 12-8 241 12-15 12-16 243 12-21 244 12-27 12-26 $830.00 246 12-30 12-29 $2,250.00 $180.00 248 12-29 12-30 249 12-31 $2,910.00 $16,470.00 250 12-31 $9,751.00 Total Total (ii) The cash records per books for December showed the followings. Cash Payments Journal Amount $ 921.00 Number Date Amount Number Date 245 12-20 $1,500.00 $1,100.00 238 12-1 $830.00 246 12-22 239 12-2 $6,750.00 $2,250.00 247 12-23 $420.00 240 12-2 248 12-24 $4,800.00 $2,796.00 $2,200.00 241 12-4 $180.00 249 12-30 242 12-8 $2,370.00 250 12-30 243 12-10 $26.817.00 Total $700.00 244 12-17 Cash Receipts Journal Amount Date $1,330.00 $11.00 12-1 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30.067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total
(iii) Service charge of $150 was charged wrongly to Graser's account by the bank.
(iv) A note receivable for $15,000 left by Graser Company with bank for collection that had
been collected and credited to company's account. Along with the note collection, interest
of $150 was also collected. Interest was accrued and recorded in the month-end adjusting
entries by Graser Company previously.
(v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account
by the bank and returned with the notation "NSF."
(vi) Graser's account had a check issued in payment of Building, correctly written in the amount
to pay but erroneously recorded in Graser's accounting records. Other than this, all
accounting records are correct.
Required
a) Prepare the bank reconciliation of Graser Company at December 31, 2019.
Prepare the reconciling journal entries according to the reconciliation in part (a).
b)
Transcribed Image Text:(iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. Prepare the reconciling journal entries according to the reconciliation in part (a). b)
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