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Susan Panera is preparing the June 30 bank reconciliation for Panera Bakery. She discovers the following items that explain the difference between the cash balance on her books and the balance as reported by Lawrence Bank: 1. An ATM withdrawal of $200 for personal use was not recorded by Susan. 2. A deposit of $850 was recorded by Susan but has not been received by Lawrence Bank as of June 30. 3. A check written in payment on account to Jayhawk Supply for $340 was recorded by Susan as $430 and by Lawrence Bank as $530. 4. An ATM deposit of $350 was recorded twice by Lawrence Bank. 5. An electronic funds transfer of $260 to Sunflower Mills as a payment on account was not recorded by Susan. 6. Checks No. 103 for $235 and No. 110 for $127 had not cleared Lawrence Bank as of June 30. Required 1. Prepare the journal entries required to correct Panera Bakery’s books as of June 30. 2. Prepare the journal entries required to correct Lawrence Bank’s books as of June 30.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 7, Problem 1CP
Textbook Problem

Susan Panera is preparing the June 30 bank reconciliation for Panera Bakery. She discovers the following items that explain the difference between the cash balance on her books and the balance as reported by Lawrence Bank:

  1. 1. An ATM withdrawal of $200 for personal use was not recorded by Susan.
  2. 2. A deposit of $850 was recorded by Susan but has not been received by Lawrence Bank as of June 30.
  3. 3. A check written in payment on account to Jayhawk Supply for $340 was recorded by Susan as $430 and by Lawrence Bank as $530.
  4. 4. An ATM deposit of $350 was recorded twice by Lawrence Bank.
  5. 5. An electronic funds transfer of $260 to Sunflower Mills as a payment on account was not recorded by Susan.
  6. 6. Checks No. 103 for $235 and No. 110 for $127 had not cleared Lawrence Bank as of June 30.

Required

  1. 1. Prepare the journal entries required to correct Panera Bakery’s books as of June 30.
  2. 2. Prepare the journal entries required to correct Lawrence Bank’s books as of June 30.

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Chapter 7 Solutions

College Accounting, Chapters 1-27
Show all chapter solutions
Ch. 7 - Match the following words with their definitions...Ch. 7 - Indicate how each of the following items should be...Ch. 7 - A petty cash fund established for 200 had the...Ch. 7 - The cash register tape for June 30 showed cash...Ch. 7 - Why must a signature card be filled out and signed...Ch. 7 - Explain the difference between a blank endorsement...Ch. 7 - Who are the three parties to every check?Ch. 7 - What are the three steps to follow in preparing a...Ch. 7 - What are the most common reasons for differences...Ch. 7 - What are the three steps to follow in preparing a...Ch. 7 - What two kinds of items on a bank reconciliation...Ch. 7 - Name five common uses of electronic funds...Ch. 7 - What is the purpose of a petty cash fund?Ch. 7 - What should be prepared every time a petty cash...Ch. 7 - At what two times should the petty cash fund be...Ch. 7 - From what source is the information obtained for...Ch. 7 - At what two times would an entry be made affecting...Ch. 7 - What does a debit balance in the cash short and...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - PREPARE DEPOSIT TICKET Based on the following...Ch. 7 - PREPARE CHECK AND STUB Based on the following...Ch. 7 - BANK RECONCILIATION PROCEDURES In a format similar...Ch. 7 - PREPARE JOURNAL ENTRIES FOR BANK RECONCILIATION...Ch. 7 - PETTY CASH JOURNAL ENTRIES Based on the following...Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - PETTY CASH RECORD AND JOURNAL ENTRIES On May 1, a...Ch. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - CHECKING ACCOUNT TERMS Match the following words...Ch. 7 - PREPARE DEPOSIT TICKET Based on the following...Ch. 7 - PREPARE CHECK AND STUB Based on the following...Ch. 7 - BANK RECONCILIATION PROCEDURES In a format similar...Ch. 7 - PREPARE JOURNAL ENTRIES FOR BANK RECONCILIATION...Ch. 7 - PETTY CASH JOURNAL ENTRIES Based on the following...Ch. 7 - CASH SHORT AND OVER ENTRIES Based on the following...Ch. 7 - BANK RECONCILI ATION AND RELATED JOURNAL ENTRIES...Ch. 7 - BANK RECONCILIATION AND RELATED JOURNAL ENTRIES...Ch. 7 - PETTY CASH RECORD AND JOURNAL ENTRIES On July 1, a...Ch. 7 - CASH SHORT AND OVER ENTRIES Listed below are the...Ch. 7 - The current months bank statement for your account...Ch. 7 - Turner Excavation maintains a checking account and...Ch. 7 - Susan Panera is preparing the June 30 bank...

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