Jim’s Fitness Center deposits all receipts in the bank each evening and makes all payments by check. On April 30, its ledger balance of cash is $1,515.10. The bank statement balance of cash as of April 30 is $1,920.42. Use the following information to reconcile the bank statement: a. The reconciliation for March, the previous month, showed three checks outstanding on March 31: no. 555 for $56.00, no. 556 for $428.25, and no. 557 for $20.00. Check no. 555 and no. 557 were returned with the April bank statement; however, check no. 556 was not returned. b. Check no. 565 for $120.00, no. 567 for $45.00, no. 569 for $15.00, and no. 570 for $18.15 were written during April and have not been returned by the bank. c. A deposit of $119.08 was placed in the night depository on April 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. 561, for $46, was written correctly, payable to J. L. Lang, the owner, for personal use, but was recorded in the checkbook as $64. 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 Millie Smith in the amount of $95. Required 1. Prepare a bank reconciliation as of April 30, 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 $1,413.10

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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 5PB
Textbook Problem

Jim’s Fitness Center deposits all receipts in the bank each evening and makes all payments by check. On April 30, its ledger balance of cash is $1,515.10. The bank statement balance of cash as of April 30 is $1,920.42. Use the following information to reconcile the bank statement:

  1. a. The reconciliation for March, the previous month, showed three checks outstanding on March 31: no. 555 for $56.00, no. 556 for $428.25, and no. 557 for $20.00. Check no. 555 and no. 557 were returned with the April bank statement; however, check no. 556 was not returned.
  2. b. Check no. 565 for $120.00, no. 567 for $45.00, no. 569 for $15.00, and no. 570 for $18.15 were written during April and have not been returned by the bank.
  3. c. A deposit of $119.08 was placed in the night depository on April 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. 561, for $46, was written correctly, payable to J. L. Lang, the owner, for personal use, but was recorded in the checkbook as $64.
  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 Millie Smith in the amount of $95.

Required

  1. 1. Prepare a bank reconciliation as of April 30, 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 $1,413.10

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Chapter 6 Solutions

College Accounting (Book Only): A Career Approach
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