Zel Enterprise most recently reconciled its bank statement and book balances of cash on 30 June 2019 and reported two cheques outstanding at that time, No. 1001 for RM878 and No. 1020 for RM1,670. The following information is available for its 31 July 2019 reconciliation: From the 31 July Bank Statement Previous Balance Total cheques and debits Total deposits and credits current balance 23,600 13,204 15,623 26,019 Cheques & Debits Deposits and Credits Daily Balance Date No. Amount Date Amount Date Amount 1/7 1001 878 5/7 1983 30/6 23600 3/7 1023 245 14/7 2110 1/7 22722 5/7 1022 1118 22/7 1786 3/7 22477 10/7 1024 2153 24/7 660 CM 5/7 23342 18/7 550 NSF 27/7 3144 10/7 21189 24/7 1027 7266 14/7 23299 27/7 1025 184 18/7 22749 29/7 1028 795 22/7 24535 31/7 15 SC 24/7 23869 27/7 26829 29/7 26034 31/7 26019 From the accounting records of Zel Enterprise Cash receipts deposited: Date Cash Debit 5/7 1983 14/7 2110 22/7 1786 27/7 3144 31/7 2470 11493 Cash Disbursements: Check No. Cash Credit 1022 1118 1023 245 1024 2153 1025 184 1026 498 1027 7266 1028 785 1029 705 12954 Cash: Date Explanation Debit Credit Balance 30/6 Balance 21052 31/7 Total receipts 11493 32545 31/7 Total disbursements 12954 19591 Additional information Cheque No. 1028 is correctly drawn for RM795 to pay for July utilities; however, the record-keeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for RM785. The bank paid and deducted the correct amount. The non-sufficient funds (NSF) cheque shown in the statement was originally received from a customer, Ariel Fish, in payment of her account. The company has not yet recorded its return. The credit memorandum (CM) is from RM6,700 note that the bank collected for the company. The bank deducted an RM100 collection fee and deposited the remainder in the company’s account. The collection fee have not yet been recorded. The bank levied a service charge (SC) of RM15 on 31 July 2019. a) Prepare the 31 July 2019 bank reconciliation for Zel Enterprise b) Prepare the journal entries to adjust the book balance of cash to the reconciled balance

Zel Enterprise most recently reconciled its bank statement and book balances of cash on 30 June 2019 and reported two cheques outstanding at that time, No. 1001 for RM878 and No. 1020 for RM1,670. The following information is available for its 31 July 2019 reconciliation: From the 31 July Bank Statement Previous Balance Total cheques and debits Total deposits and credits current balance 23,600 13,204 15,623 26,019 Cheques & Debits Deposits and Credits Daily Balance Date No. Amount Date Amount Date Amount 1/7 1001 878 5/7 1983 30/6 23600 3/7 1023 245 14/7 2110 1/7 22722 5/7 1022 1118 22/7 1786 3/7 22477 10/7 1024 2153 24/7 660 CM 5/7 23342 18/7 550 NSF 27/7 3144 10/7 21189 24/7 1027 7266 14/7 23299 27/7 1025 184 18/7 22749 29/7 1028 795 22/7 24535 31/7 15 SC 24/7 23869 27/7 26829 29/7 26034 31/7 26019 From the accounting records of Zel Enterprise Cash receipts deposited: Date Cash Debit 5/7 1983 14/7 2110 22/7 1786 27/7 3144 31/7 2470 11493 Cash Disbursements: Check No. Cash Credit 1022 1118 1023 245 1024 2153 1025 184 1026 498 1027 7266 1028 785 1029 705 12954 Cash: Date Explanation Debit Credit Balance 30/6 Balance 21052 31/7 Total receipts 11493 32545 31/7 Total disbursements 12954 19591 Additional information Cheque No. 1028 is correctly drawn for RM795 to pay for July utilities; however, the record-keeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for RM785. The bank paid and deducted the correct amount. The non-sufficient funds (NSF) cheque shown in the statement was originally received from a customer, Ariel Fish, in payment of her account. The company has not yet recorded its return. The credit memorandum (CM) is from RM6,700 note that the bank collected for the company. The bank deducted an RM100 collection fee and deposited the remainder in the company’s account. The collection fee have not yet been recorded. The bank levied a service charge (SC) of RM15 on 31 July 2019. a) Prepare the 31 July 2019 bank reconciliation for Zel Enterprise b) Prepare the journal entries to adjust the book balance of cash to the reconciled balance

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 3E

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Question

From the 31 July Bank Statement

Previous Balance	Total cheques and debits	Total deposits and credits	current balance
23,600	13,204	15,623	26,019

Cheques & Debits	Deposits and Credits	Daily Balance
Date No. Amount	Date Amount	Date Amount
1/7 1001 878	5/7 1983	30/6 23600
3/7 1023 245	14/7 2110	1/7 22722
5/7 1022 1118	22/7 1786	3/7 22477
10/7 1024 2153	24/7 660 CM	5/7 23342
18/7 550 NSF	27/7 3144	10/7 21189
24/7 1027 7266		14/7 23299
27/7 1025 184		18/7 22749
29/7 1028 795		22/7 24535
31/7 15 SC		24/7 23869
		27/7 26829
		29/7 26034
		31/7 26019

From the accounting records of Zel Enterprise

Cash receipts deposited:

Date		Cash Debit
5/7		1983
14/7		2110
22/7		1786
27/7		3144
31/7		2470
		11493

Cash Disbursements:

Check No.		Cash Credit
1022		1118
1023		245
1024		2153
1025		184
1026		498
1027		7266
1028		785
1029		705
		12954

Cash:

Date	Explanation	Debit	Credit	Balance
30/6	Balance			21052
31/7	Total receipts	11493		32545
31/7	Total disbursements		12954	19591

Additional information

Cheque No. 1028 is correctly drawn for RM795 to pay for July utilities; however, the record-keeper misread the amount and entered it in the accounting records with a debit to Utilities Expense and a credit to Cash for RM785. The bank paid and deducted the correct amount.
The non-sufficient funds (NSF) cheque shown in the statement was originally received from a customer, Ariel Fish, in payment of her account. The company has not yet recorded its return.
The credit memorandum (CM) is from RM6,700 note that the bank collected for the company. The bank deducted an RM100 collection fee and deposited the remainder in the company’s account. The collection fee have not yet been recorded.
The bank levied a service charge (SC) of RM15 on 31 July 2019.

a) Prepare the 31 July 2019 bank reconciliation for Zel Enterprise

b) Prepare the journal entries to adjust the book balance of cash to the reconciled balance

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