Cash in bank account balance Bank statement balance Bank debits Bank credits Peol dehit

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 59APSA
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Problem 3-7 (IAA)
Bedlam Company provided the following data for the month
of December:
November 30 December 31
Cash in bank account balance
Bank statement balance
Bank debits
Bank credits
Book debits
Book credits
2,032,000
1,890,000
3,160,000
2,900,000
1,080,000
?
1,440,000
180,000
80,000
Outstanding checks
Deposit in transit
Check erroneously charged by
bank against entity's account
and corrected in subsequent month
Bank service charge
Note recorded as cash receipt by
entity when placed with bank
for collection and note is actually
collected by bank in subsequent
month and credited by bank to
entity's account in same month
592,000
498,000
40,000
2,000
50,000
4,000
200,000
300,000
Required:
a. Prepare a four-column reconciliation showing adjusted
balances.
b. Prepare one adjusting entry only on December 31.
Transcribed Image Text:Problem 3-7 (IAA) Bedlam Company provided the following data for the month of December: November 30 December 31 Cash in bank account balance Bank statement balance Bank debits Bank credits Book debits Book credits 2,032,000 1,890,000 3,160,000 2,900,000 1,080,000 ? 1,440,000 180,000 80,000 Outstanding checks Deposit in transit Check erroneously charged by bank against entity's account and corrected in subsequent month Bank service charge Note recorded as cash receipt by entity when placed with bank for collection and note is actually collected by bank in subsequent month and credited by bank to entity's account in same month 592,000 498,000 40,000 2,000 50,000 4,000 200,000 300,000 Required: a. Prepare a four-column reconciliation showing adjusted balances. b. Prepare one adjusting entry only on December 31.
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