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Question 4 At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at Dccember 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Deposits Checks Date Date Number Amount Amount $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 $1,330.00 $11.00 12-4 238 12-1 12-8 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 12-10 241 12-8 12-15 243 12-16 244 12-27 12-21 12-30 246 $830.00 12-26 248 $2, $180.00 12-29 00 12-29 12-31 249 12-30 $1,025.00 250 $2,910.00 $16,470.00 12-31 Total Total $2,751.00 (ii) The cash records per books for December showed the followings. Cash Payments Journal Date Number Amount $1,500.00 $1,100.00 $420.00 Date Number Amount $ 921.00 12-1 238 12-20 245 $830.00 12-2 239 12-22 246 12-2 240 12-23 247 $6,750.00 $2,250.00 12-4 241 $4,800.00 $2,796.00 $2,200.00 12-24 248 12-8 242 12-30 249 $180.00 12-10 243 $2,370.00 12-30 250 12-17 244 $700.00 Total $26,817.00 Cash Reccipts Journal Date 12-1 Amount $1,330.00 12-4 $11.00 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30,067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total (ii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a).

Question 4 At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at Dccember 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Deposits Checks Date Date Number Amount Amount $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 $1,330.00 $11.00 12-4 238 12-1 12-8 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 12-10 241 12-8 12-15 243 12-16 244 12-27 12-21 12-30 246 $830.00 12-26 248 $2, $180.00 12-29 00 12-29 12-31 249 12-30 $1,025.00 250 $2,910.00 $16,470.00 12-31 Total Total $2,751.00 (ii) The cash records per books for December showed the followings. Cash Payments Journal Date Number Amount $1,500.00 $1,100.00 $420.00 Date Number Amount $ 921.00 12-1 238 12-20 245 $830.00 12-2 239 12-22 246 12-2 240 12-23 247 $6,750.00 $2,250.00 12-4 241 $4,800.00 $2,796.00 $2,200.00 12-24 248 12-8 242 12-30 249 $180.00 12-10 243 $2,370.00 12-30 250 12-17 244 $700.00 Total $26,817.00 Cash Reccipts Journal Date 12-1 Amount $1,330.00 12-4 $11.00 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30,067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total (ii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a).

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter8: Internal Control And Cash
Section: Chapter Questions
Problem 21E
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Question 4 At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at Dccember 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Deposits Checks Date Date Number Amount Amount $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 $1,330.00 $11.00 12-4 238 12-1 12-8 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 12-10 241 12-8 12-15 243 12-16 244 12-27 12-21 12-30 246 $830.00 12-26 248 $2, $180.00 12-29 00 12-29 12-31 249 12-30 $1,025.00 250 $2,910.00 $16,470.00 12-31 Total Total $2,751.00 (ii) The cash records per books for December showed the followings. Cash Payments Journal Date Number Amount $1,500.00 $1,100.00 $420.00 Date Number Amount $ 921.00 12-1 238 12-20 245 $830.00 12-2 239 12-22 246 12-2 240 12-23 247 $6,750.00 $2,250.00 12-4 241 $4,800.00 $2,796.00 $2,200.00 12-24 248 12-8 242 12-30 249 $180.00 12-10 243 $2,370.00 12-30 250 12-17 244 $700.00 Total $26,817.00
Transcribed Image Text:Question 4 At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at Dccember 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Deposits Checks Date Date Number Amount Amount $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 $1,330.00 $11.00 12-4 238 12-1 12-8 239 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 12-10 241 12-8 12-15 243 12-16 244 12-27 12-21 12-30 246 $830.00 12-26 248 $2, $180.00 12-29 00 12-29 12-31 249 12-30 $1,025.00 250 $2,910.00 $16,470.00 12-31 Total Total $2,751.00 (ii) The cash records per books for December showed the followings. Cash Payments Journal Date Number Amount $1,500.00 $1,100.00 $420.00 Date Number Amount $ 921.00 12-1 238 12-20 245 $830.00 12-2 239 12-22 246 12-2 240 12-23 247 $6,750.00 $2,250.00 12-4 241 $4,800.00 $2,796.00 $2,200.00 12-24 248 12-8 242 12-30 249 $180.00 12-10 243 $2,370.00 12-30 250 12-17 244 $700.00 Total $26,817.00
Cash Reccipts Journal Date 12-1 Amount $1,330.00 12-4 $11.00 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30,067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total (ii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a).
Transcribed Image Text:Cash Reccipts Journal Date 12-1 Amount $1,330.00 12-4 $11.00 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 $20,316.00 $30,067.00 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total (ii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in the amount to pay but erroneously recorded in Graser's accounting records. Other than this, all accounting records are correct. Required a) Prepare the bank reconciliation of Graser Company at December 31, 2019. b) Prepare the reconciling journal entries according to the reconciliation in part (a).
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