The information needed to prepare a bank reconciliation and the minted adjusting entries for Wicked Pony at March 31 is listed below. ‘ 1. Cash balance per the accounting records of Wicked Pony, $18,106.69. 2. The bank statement showed a balance of $22,134.22 at March 31. 3. Accompanying the bank statement was a debit memorandum relating to i check for $186 from a customer, D. Otay. The check was returned by the bank and stamped “NSF”. 4. Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02; no 88 for $1,323.00; no. 89 for $16.26. 5. Also accompanying the bank statement was a debit memorandum for $44. 80 ' for safe deposit box rent; the bank had erroneously charged this item to the account of Wicked Pony. 6. On March 29, the bank collected a non-interest-bearing note for Wicked Pony. The note was for $2, 963; the bank charged a collection fee of $8. 40. 7. A deposit of $2, 008. 50 was in transit; it had been mailed to the bank on March ~31. 8. In recording a $160 check received on account from a customer, Ross Company, ' ' the accountant for Wicked Pony erroneously recorded the amount collected as $16. The check appeared correctly among the deposits on the March bank state meat. 9. The bank service charge for March amounted to $20. 40; a debit memo in this amount was returned with the bank statement. Instructions: a) Prepare a bank reconciliation at March 31. b) Prepare the necessary journal entries. c) What amount of cash should be included 1n the company’s March 31 balance sheet?
The information needed to prepare a bank reconciliation and the minted adjusting entries for Wicked Pony at March 31 is listed below. ‘ 1. Cash balance per the accounting records of Wicked Pony, $18,106.69. 2. The bank statement showed a balance of $22,134.22 at March 31. 3. Accompanying the bank statement was a debit memorandum relating to i check for $186 from a customer, D. Otay. The check was returned by the bank and stamped “NSF”. 4. Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02; no 88 for $1,323.00; no. 89 for $16.26. 5. Also accompanying the bank statement was a debit memorandum for $44. 80 ' for safe deposit box rent; the bank had erroneously charged this item to the account of Wicked Pony. 6. On March 29, the bank collected a non-interest-bearing note for Wicked Pony. The note was for $2, 963; the bank charged a collection fee of $8. 40. 7. A deposit of $2, 008. 50 was in transit; it had been mailed to the bank on March ~31. 8. In recording a $160 check received on account from a customer, Ross Company, ' ' the accountant for Wicked Pony erroneously recorded the amount collected as $16. The check appeared correctly among the deposits on the March bank state meat. 9. The bank service charge for March amounted to $20. 40; a debit memo in this amount was returned with the bank statement. Instructions: a) Prepare a bank reconciliation at March 31. b) Prepare the necessary journal entries. c) What amount of cash should be included 1n the company’s March 31 balance sheet?
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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Question
The information needed to prepare a bank reconciliation and the minted adjusting entries for
Wicked Pony at March 31 is listed below. ‘
1. Cash balance per the accounting records of Wicked Pony, $18,106.69.
2. The bank statement showed a balance of $22,134.22 at March 31.
3. Accompanying the bank statement was a debit memorandum relating to i check for $186
from a customer, D. Otay. The check was returned by the bank and stamped “NSF”.
4. Checks outstanding as of March 31 were as follows: no. 84 for $1,841.02; no 88 for
$1,323.00; no. 89 for $16.26.
5. Also accompanying the bank statement was a debit memorandum for $44. 80 ' for safe
deposit box rent; the bank had erroneously charged this item to the account of Wicked
Pony.
6. On March 29, the bank collected a non-interest-bearing note for Wicked Pony. The note
was for $2, 963; the bank charged a collection fee of $8. 40.
7. A deposit of $2, 008. 50 was in transit; it had been mailed to the bank on March ~31.
8. In recording a $160 check received on account from a customer, Ross Company, ' ' the
accountant for Wicked Pony erroneously recorded the amount collected as $16. The
check appeared correctly among the deposits on the March bank state meat.
9. The bank service charge for March amounted to $20. 40; a debit memo in this amount
was returned with the bank statement.
Instructions:
a) Prepare a bank reconciliation at March 31.
b) Prepare the necessary journal entries.
c) What amount of cash should be included 1n the company’s March 31 balance sheet?
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