Prepare a reconciliation of the bank and book balances to the correct cash balance and provide the journal entries to adjust and correct Yingying's books. Yingying Company's books show a cash balance at the Ojibway National Bank on November 30, 2020, of $20,502. The bank statement covering the month of November shows an ending balance of $22,190. An examination of Yingying's accounting records and the November bank statement identified the following reconciling items. 1. A deposit of $3,680 was taken to the bank late on November 30 but does not appear on the November bank statement. 2. Cheques written in November but not charged to (deducted from) the November bank statement are: Cheque #7327 = $150 #7348 = 4,820 #7349 = 31 3. Yingyinghas not yet recorded the $600 of interest collected by the bank on November 20 on Sequoia Co. bonds held by the bank for Yingying. 4. Bank service charges of $18 are not yet recorded on Yingying s books. 5. A $220 cheque for Yingying from a customer was returned with the bank statement and marked "NSF." The bank, having originally recognized this as part of one of Yingying's deposits, now deducted this bad cheque as a disbursement from Yingying's account. 6. Yingying discovered that cheque #7322, written in November for $131 in payment of an account payable, had been incorrectly recorded in its books as $311. 7. A cheque written on Yingyang Oil Co.'s account for $175 had been incorrectly charged to Yingying and was included with the bank statement. Instructions Prepare a reconciliation of the bank and book balances to the correct cash balance and provide the journal entries to adjust and correct Yingying's books.
Prepare a reconciliation of the bank and book balances to the correct cash balance and provide the
Yingying Company's books show a cash balance at the Ojibway National Bank on November 30, 2020, of $20,502. The bank statement covering the month of November shows an ending balance of $22,190. An examination of Yingying's accounting records and the November bank statement identified the following reconciling items.
1. A deposit of $3,680 was taken to the bank late on November 30 but does not appear on the November bank statement.
2. Cheques written in November but not charged to (deducted from) the November bank statement are:
Cheque #7327 = $150 #7348 = 4,820 #7349 = 31
3. Yingyinghas not yet recorded the $600 of interest collected by the bank on November 20 on Sequoia Co. bonds held by the bank for Yingying.
4. Bank service charges of $18 are not yet recorded on Yingying s books.
5. A $220 cheque for Yingying from a customer was returned with the bank statement and marked "NSF." The bank, having originally recognized this as part of one of Yingying's deposits, now deducted this bad cheque as a disbursement from Yingying's account.
6. Yingying discovered that cheque #7322, written in November for $131 in payment of an account payable, had been incorrectly recorded in its books as $311.
7. A cheque written on Yingyang Oil Co.'s account for $175 had been incorrectly charged to Yingying and was included with the bank statement.
Instructions
Prepare a reconciliation of the bank and book balances to the correct cash balance and provide the journal entries to adjust and correct Yingying's books.
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