December Cash Records for Kirk: Cash Receipts Date Cash Debit 4-Dec $ 4,170 9-Dec 510 14-Dec 530 17-Dec 2,180 31-Dec 1,850 Cash Payments Cheque # Cash Credit 1416 $ 860 1417 130 1418 650 1419 1,490 1420 1,440 1421 900 1422 630 Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement: Beginning balance Deposits and other credits: $ 13,600 1-Dec EFT $ 300 5-Dec 4,170 10-Dec 510 15-Dec 530 18-Dec 2,180 22-Dec BC 1,400 9,090 Cheques and other debits: 8-Dec NFS $ 1,000 11-Dec 860 19-Dec EFT 700 22-Dec 130 29-Dec 650 31-Dec 1,940 31-Dec SC 60 (5,340) Ending balance $ 17,350 Additional data for the bank reconciliation follows: The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December. The NSF check was received from a customer. The $1,400 bank collection was for a note receivable. The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490. Requirements: Journalize any required entries from the above records for Kirk’s Hardware. Prepare the company’s adjusted cash book. Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

December Cash Records for Kirk: Cash Receipts Date Cash Debit 4-Dec $ 4,170 9-Dec 510 14-Dec 530 17-Dec 2,180 31-Dec 1,850 Cash Payments Cheque # Cash Credit 1416 $ 860 1417 130 1418 650 1419 1,490 1420 1,440 1421 900 1422 630 Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement: Beginning balance Deposits and other credits: $ 13,600 1-Dec EFT $ 300 5-Dec 4,170 10-Dec 510 15-Dec 530 18-Dec 2,180 22-Dec BC 1,400 9,090 Cheques and other debits: 8-Dec NFS $ 1,000 11-Dec 860 19-Dec EFT 700 22-Dec 130 29-Dec 650 31-Dec 1,940 31-Dec SC 60 (5,340) Ending balance $ 17,350 Additional data for the bank reconciliation follows: The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December. The NSF check was received from a customer. The $1,400 bank collection was for a note receivable. The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490. Requirements: Journalize any required entries from the above records for Kirk’s Hardware. Prepare the company’s adjusted cash book. Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 5EA: Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200....

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Question

December Cash Records for Kirk:

Cash Receipts
Date	Cash Debit
4-Dec	$ 4,170
9-Dec	510
14-Dec	530
17-Dec	2,180
31-Dec	1,850

Cash Payments
Cheque #	Cash Credit
1416	$ 860
1417	130
1418	650
1419	1,490
1420	1,440
1421	900
1422	630

Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement:

Beginning balance	Deposits and other credits:	$ 13,600
1-Dec	EFT	$ 300
5-Dec		4,170
10-Dec		510
15-Dec		530
18-Dec		2,180
22-Dec	BC	1,400
			9,090
Cheques and other debits:
8-Dec	NFS	$ 1,000
11-Dec		860
19-Dec	EFT	700
22-Dec		130
29-Dec		650
31-Dec		1,940
31-Dec	SC	60
			(5,340)
Ending balance			$ 17,350

Additional data for the bank reconciliation follows:

The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December.
The NSF check was received from a customer.
The $1,400 bank collection was for a note receivable.
The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490.

Requirements:

Journalize any required entries from the above records for Kirk’s Hardware.
Prepare the company’s adjusted cash book.
Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

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