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Daytona Recycling Center reports the following information concerning cash ances and cash transactions for the month of September: 1 Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 w. service charges for the month; the other for $64.60 was attached to am check from A. Smith. 3 Included with the bank statement was $69 credit memorandum for in earned on the bank account in September. 4 The 'paid checks returned with the September bank statement disclos error in Daytona's cash records. Check no. 851 for $77.44 for telephone ex had erroneously been listed in the cash payments journal as $44.77.

Daytona Recycling Center reports the following information concerning cash ances and cash transactions for the month of September: 1 Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 w. service charges for the month; the other for $64.60 was attached to am check from A. Smith. 3 Included with the bank statement was $69 credit memorandum for in earned on the bank account in September. 4 The 'paid checks returned with the September bank statement disclos error in Daytona's cash records. Check no. 851 for $77.44 for telephone ex had erroneously been listed in the cash payments journal as $44.77.

Cornerstones of Financial Accounting
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 47E
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PROBLEM 7A-4 Another Com- prehensive Bank Reconcil- Daytona Recycling Center reports the following information concerning cash bal- ances and cash transactions for the month of September: Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 was for service charges for the month; the other for $64.60 was attached to an NSF check from A. Smith. 1 Istlon 3 Included with the bank statement was $69 credit memorandum for interest earned on the bank account in September. 4 The paid checks returned with the September bank statement disclosed an error in Daytona's cash records. Check no. 851 for $77.44 for telephone expense had erroneously been listed in the cash payments journal as $44.77. 5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de- ducted from the account by the bank. Notice that this was the bank's error. 6 Cash receipts of September 30 amounting to $585.25 were mailed to the bank too late to be included in the September bank statement. 6. 7 Checks outstanding as of September 30 were as follows: no. 860 for $151.93, no. 867 for $82.46, and no. 869 for $123.61. 8 The Cash account showed the following entries during September: Cash Sept 18,341.82 Sept 30 Month's payments 11,598.63- Balance 30 Month's recelpts 14,441.58 a Prepare a bank reconciliation at September 30. * Prepare the necessary adjusting entries in general journal form.
Transcribed Image Text:PROBLEM 7A-4 Another Com- prehensive Bank Reconcil- Daytona Recycling Center reports the following information concerning cash bal- ances and cash transactions for the month of September: Cash balance per bank statement as of September 30 was $20,893.25. 2 Two.debit memoranda accompanied the bank statement: one for $10 was for service charges for the month; the other for $64.60 was attached to an NSF check from A. Smith. 1 Istlon 3 Included with the bank statement was $69 credit memorandum for interest earned on the bank account in September. 4 The paid checks returned with the September bank statement disclosed an error in Daytona's cash records. Check no. 851 for $77.44 for telephone expense had erroneously been listed in the cash payments journal as $44.77. 5 A collection charge for $26.00 (not applicable to Daytona) was erroneously de- ducted from the account by the bank. Notice that this was the bank's error. 6 Cash receipts of September 30 amounting to $585.25 were mailed to the bank too late to be included in the September bank statement. 6. 7 Checks outstanding as of September 30 were as follows: no. 860 for $151.93, no. 867 for $82.46, and no. 869 for $123.61. 8 The Cash account showed the following entries during September: Cash Sept 18,341.82 Sept 30 Month's payments 11,598.63- Balance 30 Month's recelpts 14,441.58 a Prepare a bank reconciliation at September 30. * Prepare the necessary adjusting entries in general journal form.
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