Problem 7.8AThe Cash account in the general ledger of Hendry Corporation show a balanceof $96,990 at 31 December 2013 (prior to performing a bank reconciliation). The compan's bankstatement shows a balance of $100,560 at the same datc. An examination of the bank statementreveals the following:. Deposits in transit amount to $24,600Bank service charges total $200.3. Outstanding checks total $31,700A $3,600 check marked "NSF" from Kent Company (one of Hendry Corporation's customers)was returned to Hendry Corporation by the bank. This was the only NSF check that HendryCorporation received during 20135. A canceled check (no. 244) written by Hendry Corporation in the amount of $1,250 for officeequipment was incorrectly recorded in the general ledger as a debit to Office Equipment of$1,520, and a credit to Cash of $1,5202.4.Prepare Hendry Corporation's bank reconciliation dated 31 December 2013, and provide thea.journal entry necessary to update the company 's general ledger balance. .

Question
Asked Nov 7, 2019
26 views

Pinned below

Problem 7.8A
The Cash account in the general ledger of Hendry Corporation show a balance
of $96,990 at 31 December 2013 (prior to performing a bank reconciliation). The compan's bank
statement shows a balance of $100,560 at the same datc. An examination of the bank statement
reveals the following:
. Deposits in transit amount to $24,600
Bank service charges total $200.
3. Outstanding checks total $31,700
A $3,600 check marked "NSF" from Kent Company (one of Hendry Corporation's customers)
was returned to Hendry Corporation by the bank. This was the only NSF check that Hendry
Corporation received during 2013
5. A canceled check (no. 244) written by Hendry Corporation in the amount of $1,250 for office
equipment was incorrectly recorded in the general ledger as a debit to Office Equipment of
$1,520, and a credit to Cash of $1,520
2.
4.
Prepare Hendry Corporation's bank reconciliation dated 31 December 2013, and provide the
a.
journal entry necessary to update the company 's general ledger balance
. .
help_outline

Image Transcriptionclose

Problem 7.8A The Cash account in the general ledger of Hendry Corporation show a balance of $96,990 at 31 December 2013 (prior to performing a bank reconciliation). The compan's bank statement shows a balance of $100,560 at the same datc. An examination of the bank statement reveals the following: . Deposits in transit amount to $24,600 Bank service charges total $200. 3. Outstanding checks total $31,700 A $3,600 check marked "NSF" from Kent Company (one of Hendry Corporation's customers) was returned to Hendry Corporation by the bank. This was the only NSF check that Hendry Corporation received during 2013 5. A canceled check (no. 244) written by Hendry Corporation in the amount of $1,250 for office equipment was incorrectly recorded in the general ledger as a debit to Office Equipment of $1,520, and a credit to Cash of $1,520 2. 4. Prepare Hendry Corporation's bank reconciliation dated 31 December 2013, and provide the a. journal entry necessary to update the company 's general ledger balance . .

fullscreen
check_circle

Expert Answer

Step 1

The statement of Bank reconciliation is a report that matches the money balance on an organization's monetary record to the comparing sum on its bank statement. Such type of statement helps in locating cash manipulations, errors or frauds.

Step 2

Bank reconciliation statement and journal ...

help_outline

Image Transcriptionclose

General ledger balance $96,990 Bank statement balance $100,560 $24,600 ($31,700) Pre adjustment balance on 31st Dec. 2013 Deposit in transit Outstanding cheques Bank service charge NSF cheque returned (K company) Error correction (check #244) ($1,520 - $ 1,250) Adjusted cash balance on 31st Dec. 2009 ($200) ($3,600) 270 S93,460 S93,460 Date Accounts title and explanation Debit Credit 31st Dec. 2013 Bank service charge Accounts receivable (K company) Office equipment Cash (Bal. fig) (To update the general ledger) 200 3,600 270 3,530

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Bank Reconciliation

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: On August 1, 2019, Rafael Masey established Planet Realty, which completed the following transaction...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: It asked us to answer Round your answers to 2 decimal places.)

A: a. Compute the cost per unit for each product.

question_answer

Q: Replace Equipment A machine with a book value of $251,000 has an estimated six-year life. A proposal...

A: Replace Equipment:The productive life of an asset may be exhausted before its estimated lifetime. Th...

question_answer

Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for simil...

A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks com...

question_answer

Q: Salt Company manufactures products J, K, and L in a joint process. The companyincurred $480,000 of j...

A: Joint Cost: Joint cost is the manufacturing cost incurred on a joint production process which takes ...

question_answer

Q: Understanding Relationships, Master Budget, Comprehensive Review Optima Company is a high-technology...

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3 schedules. Please resubm...

question_answer

Q: During 2019, Basler Manufacturing produced 60,000 units and sold 55,000 for $10 per unit. Variable m...

A: Variable costing income statement.Variable costing income statement refers to an income statement th...

question_answer

Q: Exercise 9-05 Sheridan Company purchased a new machine on October 1, 2022, at a cost of $66,840. Th...

A: Calculate the annual depreciation expense under straight line method.

question_answer

Q: Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics Company had 2,400 ounces ...

A: Process Costing: Process costing is a method of cost accounting, which is used when the production i...