The Quilt Shop deposits all receipts in the bank each evening and makes all payments by check. On July 31, its ledger balance of cash is $2,830.15. The bank statement balance of cash as of July 31 is $3,215.20. Use the following information to reconcile the bank statement: a. The reconciliation for June, the previous month, showed three checks outstanding on June 30: no. 1820 for $85.00, no. 1822 for $115.20, and no. 1823 for $120.00. Check no. 1820 and no. 1822 were returned with the July bank statement; however, check no. 1823 was not returned. b. Check no. 2500 for $255.00, no. 2517 for $332.00, no. 2518 for $115.00, and no. 2519 for $28.85 were written during July and have not been returned by the bank. c. A deposit of $446.80 was placed in the night depository on July 31 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. 2587, for $26, was written correctly, payable to J. L. Lang, the owner, for personal use, but was recorded in the checkbook as $62. e. Included in the bank statement was a bank debit memo for service charges, $25. f. Included in the bank statement was an NSF check from Jeremy Jones in the amount of $30. Required 1. Prepare a bank reconciliation as of July 31, assuming that the debit memo and NSF check have not been recorded. 2. Record the necessary entries in general journal form. Check Figure Adjusted ledger balance of cash $2,811.15

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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
Section
Chapter 6, Problem 5PA
Textbook Problem

The Quilt Shop deposits all receipts in the bank each evening and makes all payments by check. On July 31, its ledger balance of cash is $2,830.15. The bank statement balance of cash as of July 31 is $3,215.20. Use the following information to reconcile the bank statement:

  1. a. The reconciliation for June, the previous month, showed three checks outstanding on June 30: no. 1820 for $85.00, no. 1822 for $115.20, and no. 1823 for $120.00. Check no. 1820 and no. 1822 were returned with the July bank statement; however, check no. 1823 was not returned.
  2. b. Check no. 2500 for $255.00, no. 2517 for $332.00, no. 2518 for $115.00, and no. 2519 for $28.85 were written during July and have not been returned by the bank.
  3. c. A deposit of $446.80 was placed in the night depository on July 31 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. 2587, for $26, was written correctly, payable to J. L. Lang, the owner, for personal use, but was recorded in the checkbook as $62.
  5. e. Included in the bank statement was a bank debit memo for service charges, $25.
  6. f. Included in the bank statement was an NSF check from Jeremy Jones in the amount of $30.

Required

  1. 1. Prepare a bank reconciliation as of July 31, assuming that the debit memo and NSF check have not been recorded.
  2. 2. Record the necessary entries in general journal form.

Check Figure

Adjusted ledger balance of cash $2,811.15

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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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