P8-5A Rodriguez Company maintains a checking account at the Imura Bank. At July 31, selected data from the ledger balance and the bank statement are shown below. Cash in Bank Per Books Per Bank Balance, July 1 $17,600 $15,800 July receipts 81,400 July credits 83,470 July disbursements 77,150 July debits 74,756 Balance, July 31 $21,850 $24,514 Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $4,470 for the collection of a $4,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks. You also discover the following errors involving July checks. (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $8,000 and outstanding checks of $6,200. Instructions (a) Prepare a bank reconciliation at July 31, 2017. (b) Journalize the adjusting entries to be made by Rodriguez Company. Assume that interest on the note has not been accrued.
The bank statement contained two memoranda:
1. A credit of $5,145 for the collection of a $5,000 note for Langer Company plus interest
of $160 and less a collection fee of $15. Langer Company has not accrued any interest
on the note.
2. A debit of $572.80 for an NSF check written by L. Rees, a customer. At December 31,
the check had not been redeposited in the bank.
At December 31, the cash balance per books was $12,485.20, and the cash balance per the
bank statement was $20,154.30. The bank did not make any errors, but two errors were
made by Langer Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at
December 31.
(b) Prepare the
errors pertaining to recording checks should be made to Accounts Payable. The correction
of any errors relating to recording cash receipts should be made to Accounts
Receivable.)
P8-5A Rodriguez Company maintains a checking account at the Imura Bank. At July 31,
selected data from the ledger balance and the bank statement are shown below.
Cash in Bank
Per Books Per Bank
Balance, July 1 $17,600 $15,800
July receipts 81,400
July credits 83,470
July disbursements 77,150
July debits 74,756
Balance, July 31 $21,850 $24,514
Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a
credit memorandum of $4,470 for the collection of a $4,400 note plus interest revenue of
$70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum
of $56 for printing additional company checks.
You also discover the following errors involving July checks. (1) A check for $230 to a
creditor on account that cleared the bank in July was journalized and posted as $320.
(2) A salary check to an employee for $255 was recorded by the bank for $155.
The June 30 bank reconciliation contained only two reconciling items: deposits in
transit $8,000 and outstanding checks of $6,200.
Instructions
(a) Prepare a bank reconciliation at July 31, 2017.
(b) Journalize the adjusting entries to be made by Rodriguez Company. Assume that interest
on the note has not been accrued.
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