Question 4-At December 31 2019, according to the records of Graser Company, the balance of Cash accountwas $21,783. The October 31 bank statement showed a balance of $26,394. You are to preparethe bank reconciliation of Graser Company at December 31, using the following supplementaryinformation:(i)The December 31 bank statement showed the following checks and deposits.Bank StatementChecksDepositsDateNumberAmountDateAmount$1,330.00$11.00$1,500.00$1,100.00$4,800.00$2,200.00$700.00$830.0012-423812-112-812-4$1,165.00$1,472.00$1,745.00$1,367.00$1,636.00$1,025.0012-1024112-812-1524312-1612-2724412-2112-3024612-2612-29$2,250.00$180.0024812-2912-3112-30$2,910.00$16.470.0012-31250TotalTotal$9,751.00(ii)The cash records per books for December showed the followings.Cash Payments JournalDateNumberAmountDateNumberAmount$1,500.00$1,100.00$420.0012-123812-20245$921.0012-212-22246$830.0012-23$6,750.00$2,250.00$180.0012-2240$4,800.00$2,796.00$2,200.0012-424112-2424812-824212-3024912-1024312-30$2,370.0012-17244$700.00Total$26,817.00Cash Receints JournalAmount$1,330.00$11.00$1,165.00$1,472.00$1,745.00$1,367.00$1,636.00$1,025.00$20,316.00$30.067.00Date12-112-412-812-1612-2112-26112-2912-3012-31TotalPage 11 of 12 (iii) 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 hadbeen collected and credited to company's account. Along with the note collection, interestof $150 was also collected. Interest was accrued and recorded in the month-end adjustingentries by Graser Company previously.(v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's accountby the bank and returned with the notation "NSF."(vi) Graser's account had a check issued in payment of Building, correctly written in the amountto pay but erroneously recorded in Graser's accounting records. Other than this, allaccounting records are correct.Requireda) Prepare the bank reconciliation of Graser Company at December 31, 2019.b) Prepare the reconciling journal entries according to the reconciliation in part (a).~ End of Section B

Question
Asked Dec 19, 2019
62 views

Question 4 in pinned below and it has 2 pictures

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 December 31, using the following supplementary
information:
(i)
The December 31 bank statement showed the following checks and deposits.
Bank Statement
Checks
Deposits
Date
Number
Amount
Date
Amount
$1,330.00
$11.00
$1,500.00
$1,100.00
$4,800.00
$2,200.00
$700.00
$830.00
12-4
238
12-1
12-8
12-4
$1,165.00
$1,472.00
$1,745.00
$1,367.00
$1,636.00
$1,025.00
12-10
241
12-8
12-15
243
12-16
12-27
244
12-21
12-30
246
12-26
12-29
$2,250.00
$180.00
248
12-29
12-31
12-30
$2,910.00
$16.470.00
12-31
250
Total
Total
$9,751.00
(ii)
The cash records per books for December showed the followings.
Cash Payments Journal
Date
Number
Amount
Date
Number
Amount
$1,500.00
$1,100.00
$420.00
12-1
238
12-20
245
$921.00
12-2
12-22
246
$830.00
12-23
$6,750.00
$2,250.00
$180.00
12-2
240
$4,800.00
$2,796.00
$2,200.00
12-4
241
12-24
248
12-8
242
12-30
249
12-10
243
12-30
$2,370.00
12-17
244
$700.00
Total
$26,817.00
Cash Receints Journal
Amount
$1,330.00
$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
Date
12-1
12-4
12-8
12-16
12-21
12-26
112-29
12-30
12-31
Total
Page 11 of 12
help_outline

Image Transcriptionclose

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 December 31, using the following supplementary information: (i) The December 31 bank statement showed the following checks and deposits. Bank Statement Checks Deposits Date Number Amount Date Amount $1,330.00 $11.00 $1,500.00 $1,100.00 $4,800.00 $2,200.00 $700.00 $830.00 12-4 238 12-1 12-8 12-4 $1,165.00 $1,472.00 $1,745.00 $1,367.00 $1,636.00 $1,025.00 12-10 241 12-8 12-15 243 12-16 12-27 244 12-21 12-30 246 12-26 12-29 $2,250.00 $180.00 248 12-29 12-31 12-30 $2,910.00 $16.470.00 12-31 250 Total Total $9,751.00 (ii) The cash records per books for December showed the followings. Cash Payments Journal Date Number Amount Date Number Amount $1,500.00 $1,100.00 $420.00 12-1 238 12-20 245 $921.00 12-2 12-22 246 $830.00 12-23 $6,750.00 $2,250.00 $180.00 12-2 240 $4,800.00 $2,796.00 $2,200.00 12-4 241 12-24 248 12-8 242 12-30 249 12-10 243 12-30 $2,370.00 12-17 244 $700.00 Total $26,817.00 Cash Receints Journal Amount $1,330.00 $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 Date 12-1 12-4 12-8 12-16 12-21 12-26 112-29 12-30 12-31 Total Page 11 of 12

fullscreen
(iii) 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).
~ End of Section B
help_outline

Image Transcriptionclose

(iii) 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). ~ End of Section B

fullscreen
check_circle

Expert Answer

Step 1

a.  Following is the bank reconciliation statement of G’s Company:

help_outline

Image Transcriptionclose

G's Company Bank Reconciliation Statement December 31 Particulars Amount $ Amount $ Cash Balance as per Bank Add: $26,394 • Service fee wrongly charged • Pay check wrongly charged • Deposit in transit $150 $420 $20,316 $20,886 $47,280 Less: Outstanding Checks $420 Check No. 240 • Check No. 242 • Check No. 245 Check No. 247 Adjusted Balance on the bank reconciliation $2,796 $921 $6,750 $10,887 $36.393 G's Company Bank Reconciliation Statement December 31 Amount $ Particulars Cash Balance as per Cash Book Amount $ $21,783 Add: • Note Collected by Bank • Interest on Note Collected by Bank $15,000 $150 15,150 $36,933 $540 $36.393 Less: Error in recording pay check No. 250 ($2,910 - $2,370) Adjusted Balance on the bank reconciliation

fullscreen
Step 2

b.   Following are the adju...

help_outline

Image Transcriptionclose

Account Title and Explanation Debit S $15,150 Credit S Date Dec. 31 Cash account Debit To Note Receivable Account To Interest Receivable Account (Being to record collection of note by bank) $15,000 $150 Dec. 31 Building Account Debit To Cash Account $540 $540 (Being to record short pay check No. 250 issued)

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

Related Accounting Q&A

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

Q: Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that p...

A: Requirement a:Determine the division of $148,000 net income between the partners.

question_answer

Q: What are the main advantages of (a) proprietorships, (b) partnerships, and (c) limited liability com...

A: Proprietorship is a form of business where a single person runs & owns the business. He has comp...

question_answer

Q: Prior to liquidating their partnership, Manning and Adamo had capital accounts of $240,000 and $150,...

A: Partnership It is that form of organization which is owned and managed by two or more persons who in...

question_answer

Q: The declaration, record, and payment dates in connection with a cash dividend of $135,000 on a corpo...

A: Record the journal entry for the declaration of cash dividends:January 12- Declaration Date.

question_answer

Q: What account is debited when recording a purchase of inventory when using the perpetual inventory sy...

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the invent...

question_answer

Q: Steve Company estimates uncollectible accounts receivable using percentage of receivable method. Dur...

A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this ac...

question_answer

Q: Taye Barrow, M.D., and James Robbins, M.D., are sole owners of two medical practices that operate in...

A:  

question_answer

Q: Holly Renfro contributed a patent, accounts receivable, and $20,000 cash to a partnership. The paten...

A: Partnership It is that form of organization which is owned and managed by two or more persons who in...

question_answer

Q: Jackie Fox owns and operates Platinum Transport Co. During the past year, Jackie incurred the follow...

A: Capital expenditure: It refers to the amount spent on acquiring, maintaining and improving the fixed...