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BANK RECONCILIATION AND RELATED JOURNAL ENTRIES The book balance in the checking account of Tori’s Health Center as of April 30 is $4,690.30. The bank statement shows an ending balance of $3,275.60. By examining last month’s bank reconciliation, comparing the deposits and checks written per books and per bank in April, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found: (a) An ATM withdrawal of $200 on April 20 by Tori for personal use was not recorded on the books. (b) A bank debit memo issued for an NSF check from a customer of $29.10. (c) A bank credit memo issued for interest of $28 earned during the month. (d) On April 30, a deposit of $1,592 was made, which is not shown on the bank statement. (e) A bank debit memo issued for $24.50 for bank service charges. (f) Checks No. 481, 493, and 494 for the amounts of $215, $71, and $24.30, respectively, were written during April but have not yet been received by the bank. (g) The reconciliation from the previous month showed outstanding checks totaling $418.25. One of these checks, No. 397 for $38.60, has not yet been received by the bank. (h) Check No. 422 written to a creditor in the amount of $217.90 was recorded in the books as $271.90. Required 1. Prepare a bank reconciliation as of April 30. 2. Prepare the required journal entries.

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 9SPB
Textbook Problem

BANK RECONCILIATION AND RELATED JOURNAL ENTRIES The book balance in the checking account of Tori’s Health Center as of April 30 is $4,690.30. The bank statement shows an ending balance of $3,275.60. By examining last month’s bank reconciliation, comparing the deposits and checks written per books and per bank in April, and noting the service charges and other debit and credit memos shown on the bank statement, the following were found:

  1. (a) An ATM withdrawal of $200 on April 20 by Tori for personal use was not recorded on the books.
  2. (b) A bank debit memo issued for an NSF check from a customer of $29.10.
  3. (c) A bank credit memo issued for interest of $28 earned during the month.
  4. (d) On April 30, a deposit of $1,592 was made, which is not shown on the bank statement.
  5. (e) A bank debit memo issued for $24.50 for bank service charges.
  6. (f) Checks No. 481, 493, and 494 for the amounts of $215, $71, and $24.30, respectively, were written during April but have not yet been received by the bank.
  7. (g) The reconciliation from the previous month showed outstanding checks totaling $418.25. One of these checks, No. 397 for $38.60, has not yet been received by the bank.
  8. (h) Check No. 422 written to a creditor in the amount of $217.90 was recorded in the books as $271.90.

Required

  1. 1. Prepare a bank reconciliation as of April 30.
  2. 2. Prepare the required journal entries.

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Chapter 7 Solutions

College Accounting, Chapters 1-27
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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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