Gibson Energy Ltd.'s general ledger account for Cash in Bank showed the following at December 31, 2019: Cash in Bank Acct. No. 101 Balance DR (CR) Date Description Folio Debit Credit Nov. 30 Balance (overdraft) 221,000 Dec. 1-31 Cash receipts CRJ10 813,000 1,034,000 Dec. 1-31 Cash Payments CDJ21 972,000 62,000 December deposits made and checks issued were as follows: Deposits Checks Date Amount No. Amount Dec. 5 30,000 232 110,000 7 210,000 233 83,000 9 85,000 234 25,000 12 32,000 235 59,000 15 26,000 236 590,000 21 420,000 237 17,000 24 16,000 238 28,000 26 51,000 239 77,000 28 21,000 31 15,000 $813,000 $972,000 The December bank statement showed: First Chartered Bank Gibson Energy Ltd. Bank Statement Month Ended December 31, 2019 Date Type Out In Balance Dec. 3 Deposit 70,000 215,000 4 NR XYZ Corp. 80,000 295,000 5 Ck. 232 110,000 185,000 6 Ck. 231 70,000 115,000 6 Deposit 30,000 145,000 7 Deposit 210,000 355,000 10 Ck. 234 25,000 330,000 12 Ck. 236 590,000 (260,000) 13 Deposit 32,000 (228,000) 14 Ck. 52094* 62,000 (290,000) 14 NSF ABC. Inc. 7,000 (297,000) 15 Deposit 26,000 (271,000) 16 Ck. 238 28,000 (299,000) 17 Deposit 420,000 121,000 18 Ck. 235 59,000 62,000 20 Ck. 237 17,000 45,000 24 Deposit 16,000 61,000 26 Deposit 51,000 112,000 28 Deposit 21,000 133,000 31 OD int 1,320 131,680 31 SC 60 131,620 *drawn in error on Gibson's bank account NR = note receivable collected from XYZ Corp. including interest of: $1,951 NSF = not sufficient funds SC = service charge OD int = overdraft interest expense Outstanding items at November 30, 2019 were as follows: Nov. 30 deposit $70,000 Ck. 231 $70,000 Required: 1 Complete the bank reconciliation at December 31, 2019. 2 Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.

Gibson Energy Ltd.'s general ledger account for Cash in Bank showed the following at December 31, 2019: Cash in Bank Acct. No. 101 Balance DR (CR) Date Description Folio Debit Credit Nov. 30 Balance (overdraft) 221,000 Dec. 1-31 Cash receipts CRJ10 813,000 1,034,000 Dec. 1-31 Cash Payments CDJ21 972,000 62,000 December deposits made and checks issued were as follows: Deposits Checks Date Amount No. Amount Dec. 5 30,000 232 110,000 7 210,000 233 83,000 9 85,000 234 25,000 12 32,000 235 59,000 15 26,000 236 590,000 21 420,000 237 17,000 24 16,000 238 28,000 26 51,000 239 77,000 28 21,000 31 15,000 $813,000 $972,000 The December bank statement showed: First Chartered Bank Gibson Energy Ltd. Bank Statement Month Ended December 31, 2019 Date Type Out In Balance Dec. 3 Deposit 70,000 215,000 4 NR XYZ Corp. 80,000 295,000 5 Ck. 232 110,000 185,000 6 Ck. 231 70,000 115,000 6 Deposit 30,000 145,000 7 Deposit 210,000 355,000 10 Ck. 234 25,000 330,000 12 Ck. 236 590,000 (260,000) 13 Deposit 32,000 (228,000) 14 Ck. 52094* 62,000 (290,000) 14 NSF ABC. Inc. 7,000 (297,000) 15 Deposit 26,000 (271,000) 16 Ck. 238 28,000 (299,000) 17 Deposit 420,000 121,000 18 Ck. 235 59,000 62,000 20 Ck. 237 17,000 45,000 24 Deposit 16,000 61,000 26 Deposit 51,000 112,000 28 Deposit 21,000 133,000 31 OD int 1,320 131,680 31 SC 60 131,620 *drawn in error on Gibson's bank account NR = note receivable collected from XYZ Corp. including interest of: $1,951 NSF = not sufficient funds SC = service charge OD int = overdraft interest expense Outstanding items at November 30, 2019 were as follows: Nov. 30 deposit $70,000 Ck. 231 $70,000 Required: 1 Complete the bank reconciliation at December 31, 2019. 2 Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.

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 19E

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Question

Gibson Energy Ltd.'s general ledger account for Cash in Bank showed the following at December 31, 2019:

		Cash in Bank		Acct. No. 101
							Balance DR (CR)
Date		Description	Folio	Debit	Credit
Nov. 30		Balance (overdraft)				221,000
Dec. 1-31		Cash receipts	CRJ10	813,000		1,034,000
Dec. 1-31		Cash Payments	CDJ21		972,000	62,000

		December deposits made and checks issued were as follows:

		Deposits		Checks
		Date	Amount		No.	Amount
		Dec. 5	30,000		232	110,000
		7	210,000		233	83,000
		9	85,000		234	25,000
		12	32,000		235	59,000
		15	26,000		236	590,000
		21	420,000		237	17,000
		24	16,000		238	28,000
		26	51,000		239	77,000
		28	21,000
		31	15,000
			$813,000			$972,000

		The December bank statement showed:

		First Chartered Bank
		Gibson Energy Ltd. Bank Statement
		Month Ended December 31, 2019
		Date	Type	Out	In	Balance
		Dec. 3	Deposit		70,000	215,000
		4	NR XYZ Corp.		80,000	295,000
		5	Ck. 232	110,000		185,000
		6	Ck. 231	70,000		115,000
		6	Deposit		30,000	145,000
		7	Deposit		210,000	355,000
		10	Ck. 234	25,000		330,000
		12	Ck. 236	590,000		(260,000)
		13	Deposit		32,000	(228,000)
		14	Ck. 52094*	62,000		(290,000)
		14	NSF ABC. Inc.	7,000		(297,000)
		15	Deposit		26,000	(271,000)
		16	Ck. 238	28,000		(299,000)
		17	Deposit		420,000	121,000
		18	Ck. 235	59,000		62,000
		20	Ck. 237	17,000		45,000
		24	Deposit		16,000	61,000
		26	Deposit		51,000	112,000
		28	Deposit		21,000	133,000
		31	OD int	1,320		131,680
		31	SC	60		131,620
		*drawn in error on Gibson's bank account
		NR = note receivable collected from XYZ Corp. including interest of:
		$1,951
		NSF = not sufficient funds
		SC = service charge
		OD int = overdraft interest expense
		Outstanding items at November 30, 2019 were as follows:
			Nov. 30 deposit	$70,000
			Ck. 231		$70,000
	Required:
	1	Complete the bank reconciliation at December 31, 2019.

	2	Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.

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