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e 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 emos with the records revealed the following reconciling items: Checks outstanding totaled $10,125. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 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 C . A check drawn for $320 had been incorrectly charged by the bank as $230. . Bank service charges for October amounted to $70. nstructions: 1. Prepare a bank reconciliation. Cash balance according to bank statement Deaver Consulting Bank Reconciliation October 31, 20Y6

e 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 emos with the records revealed the following reconciling items: Checks outstanding totaled $10,125. A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 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 C . A check drawn for $320 had been incorrectly charged by the bank as $230. . Bank service charges for October amounted to $70. nstructions: 1. Prepare a bank reconciliation. Cash balance according to bank statement Deaver Consulting Bank Reconciliation October 31, 20Y6

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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ank Reconciliation and Entries ne 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 bar emos with the records revealed the following reconciling items: . Checks outstanding totaled $10,125. . A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. E. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 3. 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. 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 25,000 Cash balance according to Deaver Consulting 15,750 Add: Proceeds of note collected by bank, including $400 interest 10,000 10,400 Deduct: Error in recording check by the company as $120 instead of $1,200 1,080 Deduct: Bank service charges 70 1,150 Adjusted balance 25,000 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding numb- acrount darraacac and cach outfloue ac nonative amounte All work saved.
Transcribed Image Text:ank Reconciliation and Entries ne 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 bar emos with the records revealed the following reconciling items: . Checks outstanding totaled $10,125. . A deposit of $4,120, representing receipts from October 31, had been made too late to appear on the bank statement. E. The bank had collected $10,400 on a note left for collection. The face of the note was $10,000. 3. 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. 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 25,000 Cash balance according to Deaver Consulting 15,750 Add: Proceeds of note collected by bank, including $400 interest 10,000 10,400 Deduct: Error in recording check by the company as $120 instead of $1,200 1,080 Deduct: Bank service charges 70 1,150 Adjusted balance 25,000 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding numb- acrount darraacac and cach outfloue ac nonative amounte All work saved.
1,080 Deduct: Error in recording check by the company as $120 instead of $1,200 70 1,150 Deduct: Bank service charges 25,000 Adjusted balance 2. Illustrate the effects on the accounts and financial statements of the bank reconciliatid If no account or activity is affected, select "No effect" from the dropdown and lea account decreases and cash outflows as negative amounts. Increases to Cash: Balance Sheet Assets Liabilities +. Stockholders' Equity %3D Cash Accounts Receivable Notes Payable Retained Earnings %3D Oct. 31. Statement of Cash Flows Income Statement Decreases to Cash: Balance Sheet Assets Liabilities Stockholders' Equity Cash Accounts Receivable No Effect Retained Earnings %3D Oct. 31. Statement of Cash Flows Income Statement All work saved. DELL
Transcribed Image Text:1,080 Deduct: Error in recording check by the company as $120 instead of $1,200 70 1,150 Deduct: Bank service charges 25,000 Adjusted balance 2. Illustrate the effects on the accounts and financial statements of the bank reconciliatid If no account or activity is affected, select "No effect" from the dropdown and lea account decreases and cash outflows as negative amounts. Increases to Cash: Balance Sheet Assets Liabilities +. Stockholders' Equity %3D Cash Accounts Receivable Notes Payable Retained Earnings %3D Oct. 31. Statement of Cash Flows Income Statement Decreases to Cash: Balance Sheet Assets Liabilities Stockholders' Equity Cash Accounts Receivable No Effect Retained Earnings %3D Oct. 31. Statement of Cash Flows Income Statement All work saved. DELL
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