Problem 7.8A The 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 company's bankstalement shows a balance of $100,560 at the same datc. An examination of the bank statementreveals the following:1. 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 HendryCorporation received during 2013.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 $1,520.2.4.5.Prepare Hendry Corporation's bank reconciliation daled 31 December 2013, and provide thejournal entry necessary to update the company's general ledger balances.a.

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Asked Nov 20, 2019
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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 company's bank
stalement shows a balance of $100,560 at the same datc. An examination of the bank statement
reveals the following:
1. 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.
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.
5.
Prepare Hendry Corporation's bank reconciliation daled 31 December 2013, and provide the
journal entry necessary to update the company's general ledger balances.
a.
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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 company's bank stalement shows a balance of $100,560 at the same datc. An examination of the bank statement reveals the following: 1. 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. 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. 5. Prepare Hendry Corporation's bank reconciliation daled 31 December 2013, and provide the journal entry necessary to update the company's general ledger balances. a.

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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

Prepare a Bank reconciliation statement for Hendry Corp...

General ledger balance Bank statement balance
$100,560
$24,600
Particulars
Pre adjsutment balance as on 31st december 2013
Dep osit in transit
Outstanding cheques
Bank service charge
NSF cheque returned
Frror correction ($1,520-$1,250)
Adjusted cash balance as on December 31, 2009
$96,990
-$31,700
-$200
-$3,600
$270
S93,460
S93,460
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General ledger balance Bank statement balance $100,560 $24,600 Particulars Pre adjsutment balance as on 31st december 2013 Dep osit in transit Outstanding cheques Bank service charge NSF cheque returned Frror correction ($1,520-$1,250) Adjusted cash balance as on December 31, 2009 $96,990 -$31,700 -$200 -$3,600 $270 S93,460 S93,460

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