Answered: Prepare reconciliation for yardworxs…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 13SPB: SCHEDULE OF ACCOUNTS RECEIVABLE Based on the information provided in Problem 10-12B, prepare a...

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Question

Yardworx reconciled its book balance of Cash with its bank statement balance on April 30 and showed two cheques outstanding at the time, #1771 for $15463 and # 1780 for $955.65.

The following information is available for May 31, 2020 reconciliation:

From May 31, 2020 bank statement:

Cheque #1788 was correctly written for $985.65 to pay for May utilities however, the bookkeeper misread the amount and entered it in the accounting records with a debt to Utilities expenses and credit to Cash as though it were for $895.65. the bank paid ad deducted the correct amount.
The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded.
The credit memo resulted from $5300 electronic fund transfer for the collection of a customer payment. The bank had deducted a $100 bank service charge fee. The collection has not been recorded in the company books.

Required:

Prepare reconciliation for yardworxs
Prepare the general journal entries needed to adjust the book balance of Cash to the reconciled balance.

Analysis: the preceding bank statement discloses two places where the cancelled cheques returned with the bank statement are not numbered sequentially. In other words, some of the prenumbered cheques in the sequence are missing. Several possible situations would explain why the cancelled cheques returned with a bank statement might not be numbered sequentially. Describe three possible reasons that this might occur.

Balance of previous statement on Apr. 30/20..
5 deposits and other credits totalling..
9 cheques and other debits totalling..
$61,045.95
26,088.10
57,005.40
Current balance as of this statement..
30,128.65
Chequing Account Transactions
Transaction
Transaction
Date
Amount
Description
Date
Amount
Description
May
04
14,662.30
+Deposit
May
25
5,200.00
+Credit memo
+Deposit
-Service charge
14
849.25
+Deposit
26
4,210.10
18
-NSF cheque
15,600.40
1,166.45
31
135.00
22
+Deposit
Date
Cheque No.
Amount
Date
Cheque No.
Amount
May 01
1784
7,600.00
May
26
1785
620.15
02
1783
1,465.80
28
1771
15,463.10
15
1787
2,334-75
29
1788
985.65
16
1782
12,800.55

From Yardwors's acounting records:
Cash
Acet. No. 101
Dute
Explanation PR
Debit
Credit
Balance
2020
Apr. 30 Balance
May 31
44,627.20
73,916.25
CR7 29,289.05
31
CDS
28,089.50 45,826.75
Deposits Made
Cheques Written
May
$14,662.30
No.
1782..
$12,800.55
1783.
1784.
849.25
1,465.80
7,600.00
14.
22.
1,166.45
......
26.
1785.
1786.
4,210.10
620.15
31.....
8,400,95
974.35
......
......
Total May Cash Receipts .
$29,289.05
1787.
2,331-75
..
1788.
1789.
Total May Cash Disbursements.
895.65
1.398.25
.....*.
$28,089.50

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