Merkle Company deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $3,219.72. The bank statement balance of cash as of November 30, is $3,490.72. You are given the following information with which to reconcile the bank statement: a. A deposit of $525.30 was placed in the night depository on November 30 and did not appear on the bank statement. b. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 728 for $80.20, no. 731 for $129.00, and no. 732 for $145.34. Check no. 728 and no. 731 were returned with the November bank statement; however, check no. 732 was not returned. c. Check no. 743 for $42.00, no. 744 for $16.20, no. 745 for $119.00, and no. 746 for $35.26 were written during November but were not returned by the bank. d. A $150 personal withdrawal by C. R. Merkle, the owner, using an ATM, was not recorded. e. Included in the bank statement was a bank debit memo for service charges, $19. f. A bank credit memo was also enclosed for the collection of a note signed by O. L. Leland, $607.50, including $600.00 principal and $7.50 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 $3,658.22

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College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087
BuyFind

College Accounting (Book Only): A ...

12th Edition
Cathy J. Scott
Publisher: Cengage Learning
ISBN: 9781305084087

Solutions

Chapter 6, Problem 1PB
Textbook Problem

Merkle Company deposits all receipts in the bank each evening and makes all payments by check. On November 30, its ledger balance of cash is $3,219.72. The bank statement balance of cash as of November 30, is $3,490.72. You are given the following information with which to reconcile the bank statement:

  1. a. A deposit of $525.30 was placed in the night depository on November 30 and did not appear on the bank statement.
  2. b. The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 728 for $80.20, no. 731 for $129.00, and no. 732 for $145.34. Check no. 728 and no. 731 were returned with the November bank statement; however, check no. 732 was not returned.
  3. c. Check no. 743 for $42.00, no. 744 for $16.20, no. 745 for $119.00, and no. 746 for $35.26 were written during November but were not returned by the bank.
  4. d. A $150 personal withdrawal by C. R. Merkle, the owner, using an ATM, was not recorded.
  5. e. Included in the bank statement was a bank debit memo for service charges, $19.
  6. f. A bank credit memo was also enclosed for the collection of a note signed by O. L. Leland, $607.50, including $600.00 principal and $7.50 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 $3,658.22

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Chapter 6 Solutions

College Accounting (Book Only): A Career Approach
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 - Based in Boston, Massachusetts, Feeley Driscoll...Ch. 6 - As the new bookkeeper for a small business, you...Ch. 6 - You work as a cashier for a service business. Some...

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