Pearson eText for Financial Accounting -- Instant Access (Pearson+)
5th Edition
ISBN: 9780137525423
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON+
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 4SE
To determine
Prepare
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
SUNDAY
about:blank
lawkes Learning | Home
ion II
Saved
Help
Save & Exit
Egrane, Inc.s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period
showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges
of $24 and the EFT from a customer in payment of the customer's account of $1,200.
What journal entry should be recorded by Egrane for the EFT?
=32
Multiple Choice
Debit Cash and credit Sales Revenue for $1,200.
No journal entry is necessary for this item.
Debit Accounts Receivable and credit Cash for $1,200.
Debit Cash and credit Accounts Receivable for $1,20.
MacBook
DII
DD
吕0
F8
F9
F10
F3
F4
F5
F6
F7
#3
24
&
へ
4.
6
7
8
9
T
Y
つ
BANK RECONCILIATION AND JOURNAL ENTRIES - In the Bank Reconciliation
Template, prepare a bank reconciliation and complete the adjusting entries required. Then
upload the completed template to the Lab 17 Upload Link. Use the following data that were
accumulated for use in reconciling the bank account of Star Battles Restaurant for-October
2020:
a.
The bank service charge is $70.
b. The book balance is $6,100 at October 31, 2020.
c. Outstanding checks total $1,300.
d. An automatic EFT withdrawal was taken from the account to pay utilities in the
amount of $2,700.
A check from LukeCo for $3,500 was returned for nonsufficient funds.
f The bank received an EFT from Leah Corp and deposited S14,300 in the account.
The EFT was from Leah Corp to pay rent.
| The bank balance at October 31, 2020 was $9,730.
e.
h The bank collected a note in the amount of $1,500 deposited the cash in
Vader's account at the bank but Vader has not yet entered the amount in the
books. The total of $1,500 consists of…
lemic Calendar My MCBS Library English (en) -
ndamentals of Financial Accounting
Summer Session 12021/ACT 140/D2 / Final Examination/ AC
In a bank reconciliation statement, explain.
A. Non-sufficient-funds (NSF) check
B. What is a deposit in transit?
A BI -
mcbs.proctoring.online is sharing your screen.
Stop
11
Chapter 7 Solutions
Pearson eText for Financial Accounting -- Instant Access (Pearson+)
Ch. 7.A - Prob. 1SECh. 7.A - Prob. 2SECh. 7.A - Prob. 3AECh. 7.A - Prob. 4AECh. 7.A - Prob. 5BECh. 7.A - Prob. 6BECh. 7.A - Prob. 7APCh. 7.A - Prob. 8BPCh. 7 - Which duties should be segregated in the...Ch. 7 - Prob. 2DQ
Ch. 7 - Prob. 3DQCh. 7 - Why does the allowance method of accounting for...Ch. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - How would the net realizable value of Accounts...Ch. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1SCCh. 7 - Prob. 2SCCh. 7 - Prob. 3SCCh. 7 - Prob. 4SCCh. 7 - Prob. 5SCCh. 7 - Prob. 6SCCh. 7 - Prob. 7SCCh. 7 - Prob. 8SCCh. 7 - Prob. 9SCCh. 7 - Prob. 10SCCh. 7 - Prob. 11SCCh. 7 - Prob. 12SCCh. 7 - Prob. 1SECh. 7 - Prob. 2SECh. 7 - Prob. 3SECh. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 13SECh. 7 - Prob. 14SECh. 7 - Prob. 15SECh. 7 - Quick ratio (Learning Objective 7) 510 min....Ch. 7 - Prob. 17SECh. 7 - Prob. 18AECh. 7 - Prob. 19AECh. 7 - Prob. 20AECh. 7 - Prob. 21AECh. 7 - Prob. 22AECh. 7 - Prob. 23AECh. 7 - Prob. 24AECh. 7 - Prob. 25AECh. 7 - Prob. 26AECh. 7 - Prob. 27AECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 29AECh. 7 - Prob. 30BECh. 7 - Prob. 31BECh. 7 - Prob. 32BECh. 7 - Prob. 33BECh. 7 - Prob. 34BECh. 7 - Aging of accounts receivable allowance method...Ch. 7 - Prob. 36BECh. 7 - Prob. 37BECh. 7 - Prob. 38BECh. 7 - Prob. 39BECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 41BECh. 7 - Prob. 42APCh. 7 - Prob. 43APCh. 7 - Prob. 44APCh. 7 - Prob. 45APCh. 7 - Prob. 46APCh. 7 - Accounting for notes receivable (Learning...Ch. 7 - Prob. 48APCh. 7 - Prob. 49BPCh. 7 - Prob. 50BPCh. 7 - Prob. 51BPCh. 7 - Prob. 52BPCh. 7 - Prob. 53BPCh. 7 - Prob. 54BPCh. 7 - Prob. 55BPCh. 7 - Continuing Exercise In this exercise, we continue...Ch. 7 - Prob. 1CPCh. 7 - Prob. 1CFSAPCh. 7 - Prob. 1EIACh. 7 - Prob. 2EIACh. 7 - Financial Analysis Purpose: To help familiarize...Ch. 7 - Industry Analysis Purpose: To help you understand...Ch. 7 - Prob. 1SBACh. 7 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 4. Describe the nature of a bank reconciliation statement. 5. Identify common reconciling items and describe each of them. 6. Analyze the effects of the identified reconciling items. Reference: Quarter 1 Module 9 - Fundamentals of Accountancy, Business and Management 2 LEARNING ACTIVITY 9:1 Presented hereunder are the details of your Cash Receipts Journal, Cash Disbursements Journal and the Bank Statement of Banco de Oro. Cash Receipts Journal O.R. Number 0001 0002 Amount Date Payor P 30,000 June 3 Odessa Allera 20,000 5,000 10,000 20 Arnold Navales 0003 Juanita Nambatac 29 30 0004 Kyle Jamora Cash Disbursements Journal Check Number 6581 .6582 6583 6584 Amount Date Рayee Star 5 Grocery DX Convenience Store MY Store Eddie Gomez P 5,000 7,000 10,000 June 5 15 21 8,000 9,000 25 28 Rodolfo de la Torre 6585 Banco de Oro Bank Statement For the month of June, 20A Date Withdrawal Deposit P 30,000 Balance June 4 P 30,000 25,000 45,000 15 6581 P 5,000 21 20,000 25 6584 8,000 37,000 28 6585 9,000…arrow_forwardezto.mheducation.com kes Learning | Home mination II Saved Help Save & Exit Submit Before reconciling its bank statement, Rollin Corporation's general ledger had a month-end balance in the cash account of $8,250. The bank reconciliation for the month contained the following items: 15 Deposits in transit Outstanding checks $870 645 56 Interest earned 20 ints NSF check returned to bank Bank service charge 220 70 A 01:39:45 Given the above information, what up-to-date ending cash balance should Rollin report at month-end? Multiple Choice $7,980. $8,530. Mc Graw MacBook DII DD 80 F10 FB F9 F7 F5 F2 F3 23 2$ % & @ 3 4 6. 7 8 W R T. Y G H. J K S D * 00arrow_forwardb. Deposits in transit, $1,500. The following items could appear on a bank reconciliation: d. Bank collection of note receivable of $800, and interest of $80. fallowing items could appear on a bank reconciliation: Learn a. Outstanding checks, $670. NSF check from customer, no. 548, for $175. e Interest earned on bank balance, $20. f. Service charge, $10. The business credited Cash for $200. The correct amount was $2,000. h. The bank incorrectly decreased the business's account by $350 for a check written by another business. Classify each item as (1) an addition to the book balance, (2) a subtraction from the book balance, (3) an addition to the bank balance, or (4) a subtraction from the bank balance.arrow_forward
- eBook Using the following information, prepare the journal entries to reconcile the bank statement. Bank balance: $6,788 Book balance: $8,393 Deposits in transit: $1,735 Outstanding checks: $579 and $1,523 Bank service charges: $25 Bank incorrectly charged the account $25. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense.arrow_forwardHelp would be appreciated 2. On December 31st, Bub's gym received a bank statement for December. b. Prepare a bank reconciliation. Use the following information from the bank statement and business records. Bank balance $1685.00 Bank service charge $25.00 Outstanding Deposit, Dec 30 $450.00 Outstanding checks, No. 23 and 24 Check book balance on check stub No. 25 $1905.00arrow_forwardprado chnical University, / Unit 3: Financial Mathematics / Learn: Cash and Bank Reconciliation nand Bank Reconciliation Questions + Question 5 Which of the following is an example of a book item, an item that is found on the bank statement that you have not recorded in the books yet? Bank service charge Cash deposits made at the bank last month Interest earned last year Taxable income I don't know One attempt You answered 3 out of 4 correctly. Asking up to 8. Submit answer Exitarrow_forward
- A bank reconciliation must be performed. First you collect the data from June 30th reconciliation as follows: Balance per Bank $ 10,000 add: Deposits in Transit $ 1,800 deduct: Outstanding Cheques $ (2,200 Balance per Books $ 9,600 Second you close your update your Cash and bank account with all transactions recorded before AJE and you have: Balance July 31 $ 12,000 Deposits $ 7,300 Cheques $ 4,800 Third you look at the bank statement provided by your bank and you see the following: Balance July 31 $ 12,430 Deposits $ 6,000 Cheques $ 4,000 Note collected $ 1,000 Bank service charge $ 20 NSF cheque $ 150 Interest received $ 200 Autowithdrawals $ 500 Which of the following adjusting journal entries is required after the bank reconciliation has been prepared? Dr. Cash $20 Cr. bank fees $20 (to reflect bank fees for the month) Dr. Phone Expenses $500 Cr. Cash $500 (to reflect the automatic payment of the phone - autowithdraw) Dr. Interest…arrow_forwardThe following information is available for Pyle Garage for March, Year 2: BANK STATEMENTHAZARD STATE BANK215 MAIN STREETHAZARD, GA 30321 Pyle Garage629 Main StreetHAZARD, GA 30321 Account number62-00062March 31, Year 2 Beginning balance 3/1/Year 2 $9,070 Total deposits and other credits 30,096 Total checks and other debits 25,024 Ending balance 3/31/Year 2 14,142 Checks and Debits Deposits and Credits Check No. Amount Date Amount 1462 $ 3,795 March 1 $ 1,140 1463 1,684 March 2 6,548 1464 8,040 March 6 4,976 1465 2,946 March 12 6,209 1466 1,449 March 17 6,006 1467 6,220 March 22 2,126 DM 60 CM 3,091 1468 830 The following is a list of checks and deposits recorded on the books of Pyle Garage for March, Year 2: Date Check No. Amount of Check Date Amount of Deposit March 1 1463 $ 1,684 March 1 $ 6,548 March 5…arrow_forwardThe folowing Information was gathered by Superior Landscaping in order to prepare its Bank Reconciliation at the end of October: Balance in Cash Ledger account at end of Oct 31 $4,450 Balance of Cash in Bank Statement at end of Oct 31 3,900 Electornic Funds Transfer deposited into your Bank account late Oct 31 600 Outstanding Cheques at end of Oct 31 1,200 Deposits in Transit 2,000 NSF cheque received from a customer 350 Prepare the October 31st Bank Reconciliationarrow_forward
- Insructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Instructions The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $26,500 on a $25,000 note, including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55. 1. Prepare a bank reconciliation. Refer to the…arrow_forwardStewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance $ 22,200 Book balance $ 31,085 Add: Deposit of March 31 in transit 10,045 $ 32,245 Deduct: Outstanding cheques: #14 $ 843 #22 317 1,160 Adjusted bank balance $ 31,085 Adjusted book balance $ 31,085 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 31,085 April 30 CR17 71,762 102,847 30 CD13 92,000 10,847 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 $ 693 13 4,620 18 5,926 23…arrow_forwardStewart Recording Studio, owned by Ron Stewart, showed the following bank reconciliation at March 31: Stewart Recording Studio Bank Reconciliation March 31, 2020 Bank statement balance $ 22,200 Book balance $ 31,085 Add: Deposit of March 31 in transit 10,045 $ 32,245 Deduct: Outstanding cheques: #14 $ 843 #22 317 1,160 Adjusted bank balance $ 31,085 Adjusted book balance $ 31,085 Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2020 March 31 Balance 31,085 April 30 CR17 71,762 102,847 30 CD13 92,000 10,847 A list of deposits made and cheques written during April, taken from the Cash Receipts Journal and Cash Disbursements Journal, is shown below: Deposits Made April 7 $ 693 13 4,620 18 5,926 23…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage