The December cash records of Kirk’s Hardware follow: Cash Payments Date Cash Debit Cheque # Cash Credit 4-Dec $ 4,170 1416 $ 860 9-Dec 510 1417 130 14-Dec 530 1418 650 17-Dec 2,180 1419 1,490 31-Dec 1,850 1420 1,440 1421 900 1422 630 Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement: Bank Statement for December 2020 Beginning balance Deposits and other credits: $ 13,600 1-Dec EFT $ 300 5-Dec 4,170 10-Dec 510 15-Dec 530 18-Dec 2,180 22-Dec BC 1,400 9,090 Cheques and other debits: 8-Dec NFS $ 1,000 11-Dec 860 19-Dec EFT 700 22-Dec 130 29-Dec 650 31-Dec 1,940 31-Dec SC 60 (5,340) Ending balance $ 17,350 Additional data for the bank reconciliation follows: The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December. The NSF check was received from a customer. The $1,400 bank collection was for a note receivable. The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490. Requirements: Journalize any required entries from the above records for Kirk’s Hardware. Prepare the company’s adjusted cash book. Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

The December cash records of Kirk’s Hardware follow: Cash Payments Date Cash Debit Cheque # Cash Credit 4-Dec $ 4,170 1416 $ 860 9-Dec 510 1417 130 14-Dec 530 1418 650 17-Dec 2,180 1419 1,490 31-Dec 1,850 1420 1,440 1421 900 1422 630 Kirk’s Cash account shows a balance of $16,740 at December 31. On December 31, Kirk Hardware received the following bank statement: Bank Statement for December 2020 Beginning balance Deposits and other credits: $ 13,600 1-Dec EFT $ 300 5-Dec 4,170 10-Dec 510 15-Dec 530 18-Dec 2,180 22-Dec BC 1,400 9,090 Cheques and other debits: 8-Dec NFS $ 1,000 11-Dec 860 19-Dec EFT 700 22-Dec 130 29-Dec 650 31-Dec 1,940 31-Dec SC 60 (5,340) Ending balance $ 17,350 Additional data for the bank reconciliation follows: The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December. The NSF check was received from a customer. The $1,400 bank collection was for a note receivable. The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller mistakenly recorded the check for $1,490. Requirements: Journalize any required entries from the above records for Kirk’s Hardware. Prepare the company’s adjusted cash book. Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 8E: The revenue and cash receipts journals for Mirage Productions Inc. follow. The accounts receivable...

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Question

The December cash records of Kirk’s Hardware follow:

		Cash Payments
Date	Cash Debit		Cheque #	Cash Credit
4-Dec	$ 4,170		1416	$ 860
9-Dec	510		1417	130
14-Dec	530		1418	650
17-Dec	2,180		1419	1,490
31-Dec	1,850		1420	1,440
			1421	900
			1422	630

Kirk’s Cash account shows a balance of $16,740 at December 31. On

December 31, Kirk Hardware received the following bank statement:

Bank Statement for December 2020
Beginning balance	Deposits and other credits:		$ 13,600
1-Dec		EFT	$ 300
5-Dec			4,170
10-Dec			510
15-Dec			530
18-Dec			2,180
22-Dec		BC	1,400
				9,090
Cheques and other debits:
8-Dec		NFS	$ 1,000
11-Dec			860
19-Dec		EFT	700
22-Dec			130
29-Dec			650
31-Dec			1,940
31-Dec		SC	60
				(5,340)
Ending balance				$ 17,350

Additional data for the bank reconciliation follows:

The EFT credit was a receipt of rent. The EFT debit was an insurance payment for December.

The NSF check was received from a customer.

The $1,400 bank collection was for a note receivable.

The correct amount of check 1419 for rent expense is $1,940. Kirk’s controller

mistakenly recorded the check for $1,490.

Requirements:

Journalize any required entries from the above records for Kirk’s Hardware.

Prepare the company’s adjusted cash book.

Prepare the bank reconciliation statement for Kirk’s Hardware at December 31, 2020.

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