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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

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BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
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Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odom Corporation’s cash account showed a balance of $17,198 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information is available concerning Odom’s cash balance on March 31:

  • Undeposited cash on hand on March 31 amounted to $724.50.
  • A customer’s NSF check for $173.80 was returned with the bank statement.
  • A note for $2,000 plus interest of $25 was collected for Odom by the bank during March. The bank notified Odom of this collection on the bank statement.
  • The bank service charge for March was $15.
  • A deposit of $951.75 mailed to the bank on March 31 did not appear on the bank statement.

The following checks mailed to creditors had not been processed by the bank on March 31:

Chapter 6, Problem 23E, Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odom Corporations cash account showed a

A customer check for $149.50 in payment of his account and listed correctly for that amount on the bank statement had been incorrectly recorded on the accounting records is $194.50.

Required:

  1. 1. Prepare a bank reconciliation for Odom on March 31, 2019.
  2. 2. Prepare any adjusting journal entries necessary to record the information from Requirement 1.

1.

To determine

Prepare bank reconciliation statement for Corporation O.

Explanation

Bank reconciliation statement:

Bank reconciliation statement is a report that summarizes the banking and business activity by reconciling the company’s bank accounts with its financial records. And it compares the bank balance shown in the company’s bank statement with the balance stated in the bank statement.

Bank reconciliation statement of Corporation O is prepared as follows:

Corporation O
Bank Reconciliation Statement
March 31,2019
ParticularsAmount ($)Amount ($)
Balance from bank statement 17,924.55
Add: Deposited cash724.5 
Deposit in transit951.751,676.25
  19,600.80
Deduct: Outstanding checks  
                  #42957.4 
                  #432147...

2.

To determine

Record the adjusting journal entries.

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