close solutoin list

Arthur’s Men’s Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05. The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement: a. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned. b. Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank. c. A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement. d. The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98. e. Included in the bank statement was a bank debit memo for service charges, $29. f. A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest. Required 1. Prepare a bank reconciliation as of November 30, assuming that the debit and credit memos have not been recorded. 2. Record the necessary entries in general journal form. Check Figure Adjusted ledger balance of cash, $2,970.05

BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570
BuyFind

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
Publisher: South-Western College Pub
ISBN: 9781337280570

Solutions

Chapter
Section
Chapter 6, Problem 1PA
Textbook Problem

Arthur’s Men’s Shop deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $2,375.05.

The bank statement balance of cash as of November 30 is $2,784.77. Use the following information to reconcile the bank statement:

  1. a. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1417 for $95.00, no. 1420 for $125.87, and no. 1422 for $136.00. Check no. 1417 and no. 1422 were returned with the November bank statement; however, check no. 1420 was not returned.
  2. b. Check no. 1500 for $155.00, no. 1517 for $132.00, no. 1518 for $218.00, and no. 1519 for $128.85 were written during November and have not been returned by the bank.
  3. c. A deposit of $945 was placed in the night depository on November 30 and did not appear on the bank statement.
  4. d. The canceled checks were compared with the entries in the checkbook, and it was observed that check no. 1487, for $89, was written correctly, payable to M. A. Golden, the owner, for personal use, but was recorded in the checkbook as $98.
  5. e. Included in the bank statement was a bank debit memo for service charges, $29.
  6. f. A bank credit memo was also enclosed for the collection of a note signed by C.G. Tolson, $615, including $600 principal and $15 interest.

Required

  1. 1. Prepare a bank reconciliation as of November 30, assuming that the debit and credit memos have not been recorded.
  2. 2. Record the necessary entries in general journal form.

Check Figure

Adjusted ledger balance of cash, $2,970.05

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 6 Solutions

College Accounting (Book Only): A Career Approach
Show all chapter solutions
Ch. 6 - What is the purpose of endorsing a check?Ch. 6 - Why is there generally a difference between the...Ch. 6 - Indicate whether the following items in a bank...Ch. 6 - Why is it necessary to make general journal...Ch. 6 - a. Why would a business use a Petty Cash Fund? b....Ch. 6 - a. What does a debit balance in Cash Short and...Ch. 6 - Fill in the missing amounts for the following bank...Ch. 6 - The Ledger Balance of Cash section of the bank...Ch. 6 - When the bank statement is received on July 3, it...Ch. 6 - Place a check mark in the column that indicates...Ch. 6 - Hosung Companys Cash account shows a balance of...Ch. 6 - Record entries in general journal form to record...Ch. 6 - At the end of the day, the cash register tape...Ch. 6 - a. Describe the entries that have been posted to...Ch. 6 - Arthurs Mens Shop deposits all receipts in the...Ch. 6 - On May 1 of this year, Ellsworth and Company...Ch. 6 - Ellie Harrod, owner of Harrods Dry Cleaners, makes...Ch. 6 - On August 31, Baginski and Company receives its...Ch. 6 - The Quilt Shop deposits all receipts in the bank...Ch. 6 - Merkle Company deposits all receipts in the bank...Ch. 6 - On March 1 of this year, Stowe Company established...Ch. 6 - Roberta Felino, owner of Robertas Beauty Salon,...Ch. 6 - On August 2, Northern Motel receives its bank...Ch. 6 - Jims Fitness Center deposits all receipts in the...Ch. 6 - BDO USA, LLP and Grant Thornton, LLP are...Ch. 6 - As the new bookkeeper for a small business, you...Ch. 6 - You work as a cashier for a service business. Some...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Identify and describe the major types of teams.

Foundations of Business (MindTap Course List)

List and describe four determinants of productivity.

Principles of Macroeconomics (MindTap Course List)

What reinvestment rate assumptions are built into the NPV, IRR, and MIRR methods? Give an explanation for your ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)