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Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks an memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. e. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31.095 Add: Deposit of October 31, not recorded by bank 4,120 $35.215 Add: Outstanding checks 10.125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest

Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks an memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. e. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31.095 Add: Deposit of October 31, not recorded by bank 4,120 $35.215 Add: Outstanding checks 10.125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest

Century 21 Accounting Multicolumn Journal
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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Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31,095 Add: Deposit of October 31, not recorded by bank 4,120 35,215 Add: Outstanding checks 10,125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest Adjusted balance
Transcribed Image Text:Bank Reconciliation and Entries The cash account for Deaver Consulting at October 31, 20Y6, indicated a balance of $15,750. The bank statement indicated a balance of $31.095 on October 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,125. b. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. c. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. d. A check for $1,200 returned with the statement had been incorrectly recorded by Deaver Consulting as $120. The check was for the payment of an obligation to Oxford Office Supplies Co. for the purchase of office supplies on account. e. A check drawn for $320 had been incorrectly charged by the bank as $230. f. Bank service charges for October amounted to $70. Instructions: 1. Prepare a bank reconciliation. Deaver Consulting Bank Reconciliation October 31, 20Y6 Cash balance according to bank statement 31,095 Add: Deposit of October 31, not recorded by bank 4,120 35,215 Add: Outstanding checks 10,125 Deduct: Bank error in charging check as $230 instead of $320 90 10,215 Adjusted balance Cash balance according to Deaver Consulting Add: Proceeds of note collected by bank, including $400 interest Adjusted balance
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