Principles Of Accounting
12th Edition
ISBN: 9781285637877
Author: NEEDLES
Publisher: Cengage
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Question
Chapter 8, Problem 4P
1.
To determine
Prepare a bank reconciliation of Company S as of May 31, 2014.
2.
To determine
Prepare the journal entries necessary to adjust the accounts.
3.
To determine
Determine the amount of cash that should appear on Company S’s
4.
To determine
Discuss the reason behind considering a bank reconciliation as important control over cash.
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The following information is available for delta company as of April 30, 2014:
a. Cash on the books as of April 30 amounted to $114,175.28. Cash on the bank statement for the same date was $141,717.08
b. A deposit of $14,249.84, representing cash receipts of April 30, did not appear on the bank statement
c. Outstanding checks total $7,293.64.
d. A check for $2,420.00 returned with the statement recorded as $2024.00. The check was for advertising.
e. The bank service charge for April amounted to $26.00.
f. The bank collected $36,400.00 for delta company on a note. The face value of the note was $36,000.00.
g. An NSF check for $1,140.00 from a customer, hasan Ali, was returned with the statement.
h. The bank mistakenly deducted a check for $800.00 that was drawn by alpha corporation.
i. The bank reported a credit of $460.00 for interest on the average balance.
required
1. Why is a bank reconciliation a necessary internal control?
The following information is available for delta company as of April 30, 2014:
a. Cash on the books as of April 30 amounted to $114,175.28. Cash on the bank statement for the same date was $141,717.08
b. A deposit of $14,249.84, representing cash receipts of April 30, did not appear on the bank statement
c. Outstanding checks total $7,293.64.
d. A check for $2,420.00 returned with the statement recorded as $2024.00. The check was for advertising.
e. The bank service charge for April amounted to $26.00.
f. The bank collected $36,400.00 for delta company on a note. The face value of the note was $36,000.00.
g. An NSF check for $1,140.00 from a customer, hasan Ali, was returned with the statement.
h. The bank mistakenly deducted a check for $800.00 that was drawn by alpha corporation.
i. The bank reported a credit of $460.00 for interest on the average balance.
required
1. prepare a bank reconciliation for delta as of April 30, 2014.
2. Prepare the necessary journal critics from the…
The following information relates to M Park Corporation for the month of March 2022:1. Cash balance per books, March 31 was $20,647.002. Deposits in transit, March 31 were $8,140.003. The March bank service charge was $34.00 and has not been recorded by the company.4. Outstanding checks, March 31 were $3,905.005. An electronic funds transfer (EFT) collected by the bank was $590. The collection has not been recorded by M Park Corporation.6. The bank made an error and recorded a $3,000 deposit twice.7. Cash balance per bank, March 31 was $19,968.00
After analyzing the data, prepare a bank reconciliation for M Park Corporation at March 31st. Reconcile the cash balance per the bank first and list items that increase the cash balance first. Also, round amounts to two decimal places.
Chapter 8 Solutions
Principles Of Accounting
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- On August 31, 2024, Cullumber Company had a cash balance per its books of $26,480. The bank statement on that date showed a balance of $17,260. A comparison of the bank statement with the Cash account revealed the following. 1. 2. 3. 4. 5. 6. (a) The August 31 deposit of $17,150 was not included on the August bank statement. The bank statement shows that Cullumber received EFT deposits from customers on account totalling $2,230 in August. Cullumber has not recorded any of these amounts. Cheque # 673 for $1,470 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,340, and #712 for $2,650. The bank statement showed on August 29 an NSF charge of $688 for a cheque issued by R. King, a customer, in payment of their account. This amount included an $9 service charge by Cullumber's bank. The company's policy is to pass on all NSF service charges to the customer. Bank…arrow_forwardThe cash account of Waterway Co. showed a ledger balance of $18,781.68 on June 30, 2025. The bank statement as of that date showed a balance of $19,920. Upon comparing the statement with the cash records, the following facts were determined. 1. 2. There were bank service charges for June of $120. A bank memo stated that Bao Dai's note for $5,760 and interest of $172.80 had been collected on June 29, and the bank had made a charge of $26.40 on the collection. (No entry had been made on Waterway's books when Bao Dai's note was sent to the bank for collection.) 3. Receipts for June 30 for $16,272 were not deposited until July 2. 4. Checks outstanding on June 30 totaled $10,253.04. 5. 6. The bank had charged the Waterway Co.'s account for a customer's uncollectible check amounting to $1,215.36 on June 29. A customer's check for $432 (as payment on the customer's Accounts Receivable) had been entered as $288 in the cash receipts journal by Waterway on June 15. 7. Check no. 742 in the amount…arrow_forwardThe cash account for Kahn Inc. on November 30, 2018, indicated a balance of $5,699. The bank statement indicated a balance of $13,167 on November 30, 2018. The following reconciling items were discovered.Checks outstanding totaled $5,175. A deposit of $3,842, representing cash receipts of November 30, had been made too late to appear on the bank statement. The bank had collected for Kahn $4,800 on a note left for collection. The face of the note was $4,200. Kahn had recorded a check for $2,040 as a $2,400. The check was for the payment of a 3-year insurance policy. A check for $1,176 had been incorrectly charged by the bank as $176. Bank service charges for November amounted to $25. Required: Prepare the bank reconciliation and journalize the necessary entries.arrow_forward
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