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Required : prepare bank account reconciliation( to the correct balance) at August 31, 2014.

Required : prepare bank account reconciliation( to the correct balance) at August 31, 2014.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 1PB
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QI AL- Kauther Company deposits all receipts and makes all payments by check. The following information is available from the cash records. 1- The bank statement for August 2014 shows an ending balance of $ 3490. 2- On August 31 the bank statement shows charges of $35 for the service charge for maintaining the checking account. 3- On August 28 the bank statement shows a return item of $ 100 plus a related bank fee of 10$. The return item is a customer's check that was returned because of insufficient funds. The check was also marked "do not redeposit." 4- The bank statement shows a charge of $80 for check printing on August 20. 5- The bank statement shows that $8 was added to the checking account on August 31 for interest earned by the company during the month of August. 6- The bank statement shows that a note receivable of $1,000 was collected by the bank on August 29 and was deposited into the company's account. On the same day, the bank withdrew $40 from the company's account as a fee for collecting the note receivable. 7- The company's Cash account at the end of August shows a balance of $967. 8- During the month of August the company wrote checks totaling more than $50,000. As of August 31 $3,02lof the checks written in August had not yet cleared the bank and $200 of checks written in June had not yet cleared the bank 9- The $1450 of cash received by the company on August 31 was recorded on the company's books of August 31. However, the $1450 of cash receipts was deposited at the bank on the morning of September 1. 10- On August 29 the company's Cash account shows cash sales of $145. The bank statement shows the amount deposited was actually $154 was the correct amount. Required : prepare bank account reconciliation( to the correct balance) at August 31, 2014.
Transcribed Image Text:QI AL- Kauther Company deposits all receipts and makes all payments by check. The following information is available from the cash records. 1- The bank statement for August 2014 shows an ending balance of $ 3490. 2- On August 31 the bank statement shows charges of $35 for the service charge for maintaining the checking account. 3- On August 28 the bank statement shows a return item of $ 100 plus a related bank fee of 10$. The return item is a customer's check that was returned because of insufficient funds. The check was also marked "do not redeposit." 4- The bank statement shows a charge of $80 for check printing on August 20. 5- The bank statement shows that $8 was added to the checking account on August 31 for interest earned by the company during the month of August. 6- The bank statement shows that a note receivable of $1,000 was collected by the bank on August 29 and was deposited into the company's account. On the same day, the bank withdrew $40 from the company's account as a fee for collecting the note receivable. 7- The company's Cash account at the end of August shows a balance of $967. 8- During the month of August the company wrote checks totaling more than $50,000. As of August 31 $3,02lof the checks written in August had not yet cleared the bank and $200 of checks written in June had not yet cleared the bank 9- The $1450 of cash received by the company on August 31 was recorded on the company's books of August 31. However, the $1450 of cash receipts was deposited at the bank on the morning of September 1. 10- On August 29 the company's Cash account shows cash sales of $145. The bank statement shows the amount deposited was actually $154 was the correct amount. Required : prepare bank account reconciliation( to the correct balance) at August 31, 2014.
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