Question

You have been asked by Simmons Company to reconcile the cash account balance of $34,754 at...

You have been asked by Simmons Company to reconcile the cash account balance of $34,754 at 12/31/19. You have obtained the following information:

   •   The 12/31/19 bank statement shows a beginning balance of $38,783, receipts of $229,832, disbursements of $226,625, and an ending balance of $41,990.

   •   There were deposits of $11,450 on 11/30/19 that did not reach the bank until December. On 12/31/19, deposits of $10,900 were mailed to the bank.

   •   The list of outstanding checks totaled $29,831 at 11/30/19 and $33,450 at 12/31/19.

   •   On 11/15/19, the bank made an error charging Simmons for a $1,000 withdrawal that should have been deducted from the account of Simmands Company. Simmons has notified the bank and is waiting for the bank to correct the error.

   •   On 12/20/19, Simmons wrote a check for $415.30, but recorded it as $451.30. The check cleared the bank in December.

   •   Simmons’s 12/22/19 deposit for $11,930 was recorded in the books as $19,330.

   •   The bank statement showed that deposited checks totaling $6,520 were dishonored (NSF) during December.

   •   Interest on a bank loan for the month of December charged by the bank but not recorded on the books amounted to $355.

9. The bank charged Simmons a $75 service charge for December.
Required:

   •   Prepare a bank reconciliation for Simmons, determining the correct cash balance.

   •   Prepare the journal entries required by Simmons at 12/31/19.

(c) What cash amount will appear on Simmons’s balance sheet at 12/31/19?

0 0
Add a comment Improve this question Transcribed image text
Answer #1
(a) Simmons Company
Bank Reconciliation
December 31, 2019
Ending Cash Balance per Books $34,754
Additions:
Company's Error $36
$34,790
Deductions:
Company's Error $7,400
NSF Check $6,520
Interest on bank loan $355
Service Charges $75 $14,350
Correct cash balance $20,440
Ending Cash Balance per Bank $41,990
Additions:
Deposits in transit $10,900
Bank Error $1,000 $11,900
$53,890
Deductions:
Outstanding checks $33,450
Correct cash balance $20,440
(b)
Date Account Titles and Explanation Debit Credit
Dec 31, 2019 Accounts Receivable $6,520
Cash $6,520
(To record NSF Check)
Interest Expense $355
Cash $355
(To record Interest Expense)
Miscellaneous Expense $75
Cash $75
(To record Miscellaneous Expense)
(c) Cash amount will appear on Simmons’s balance sheet at 12/31/19 :- $20,440
Add a comment
Know the answer?
Add Answer to:
You have been asked by Simmons Company to reconcile the cash account balance of $34,754 at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Shown below is the bank reconciliation for Marvelous Company for May 2019: Balance per bank, May...

    Shown below is the bank reconciliation for Marvelous Company for May 2019: Balance per bank, May 31, 2019 P75,000 Add: Deposits in transit 12,000 Total 87,000 Less: Outstanding checks P14,000 Bank credit recorded in error 5,000 19,000 Cash balance per books, 5/31/19 P68,000 The bank statement for June 2019 contains the following data: Total deposits P55,000 Total charges, including an NSF check of P4,000 and a service charge of P200 48,000 All outstanding checks on May 31, 2019, including the...

  • Using the following information: The bank statement balance is $5,550. The cash account balance is $5,720....

    Using the following information: The bank statement balance is $5,550. The cash account balance is $5,720. Outstanding checks amounted to $875. Deposits in transit are $1,002. The bank service charge is $34. A check for $43 for supplies was recorded as $34 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31. Candace Co. Bank Reconciliation May 31 Cash balance according to bank statement$ Adjustments: Deposits in transit not recorded by bank $ Outstanding checks Total adjustments...

  • 23-19 (Objective 23-3) You are auditing general cash for the Pittsburgh Supply Company for the fiscal...

    23-19 (Objective 23-3) You are auditing general cash for the Pittsburgh Supply Company for the fiscal year ended July 31, 2016. The client has not prepared the July 31 bank reconciliation. After a brief discussion with the owner, you agree to prepare the reconciliation, with assistance from one of Pittsburgh Supply's clerks. You obtain the following information: General Ledger Bank Statement Beginning balance 7/1/16 $ 6,400 $ 8,378 Deposits 25,474 Cash receipts journal 26,874 Checks cleared (25,307) Cash disbursements journal...

  • Jones Company collected the following information to prepare its August bank reconciliation: Cash balance per books,...

    Jones Company collected the following information to prepare its August bank reconciliation: Cash balance per books, August 31, $9.400. Deposits in transit, $1,100. Notes receivable with interest collected by bank, $2,500. Bank service charges, $50. Outstanding checks, $1,450. NSF check, $400. How much is the adjusted cash balance per books on August 312 $7,030 $11,450 $10,000 $11,100 $10,650

  • The cash balances per books for the Meson Company on November 30, 2003 and December 31,...

    The cash balances per books for the Meson Company on November 30, 2003 and December 31, 2003, are $3,625 and $10,967 respectively. The following checks and receipts were recorded on the books for the month of December 2003:                           Checks                                                                      Receipts               No.      Amount           No.      Amount                                  Amount                         Date 17            $3,503         22               $   425                             $   27,300                      12/05 18             5,505         23                9,300                                 15,000                      12/21 19                740         24                  575                                   3,200                      12/27 20            12,500         25                7,555                                   2,150                      12/31 21                205...

  • a company’s cash account was last reconciled on november 30, 20x5. the unadjusted cash balance at...

    a company’s cash account was last reconciled on november 30, 20x5. the unadjusted cash balance at december 31, 20x5 was $215,322. a comparison of the bank statement to the cash account revealed the following (note that none of the items below have been recorded on the books): • interest on the bank loan of $4,600 was charged on the bank statement. • bank service charges for the month were $670 • outstanding cheques at december 31, 20x5 were $46,520 •...

  • El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at...

    El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: $3,241 1,210 Balance per bank, November 30 Add: Deposits outstanding Less: Checks outstanding #363 #365 #380 #381 #382 Adjusted balance per bank, November 30 $ 124 202 57 87 350 (820) $3,631 The company's general ledger checking account showed the following for December: Balance, December 1 Receipts...

  • The cash balance per books for Wellmeyer Company on November 30, 2022, is $10,740.93. The following checks an...

    The cash balance per books for Wellmeyer Company on November 30, 2022, is $10,740.93. The following checks and receipts were recorded for the month of December 2022: Checks Receipts No. Amount No. Amount Amount Date 17 $372.96 22 $ 578.84 $ 843.86 12/5 18 780.62 23 1,687.50 941.54 12/21 19 157.00 24 921.30 808.58 12/27 20 587.50 25 246.031,367.00 12/31 21 234.15 In addition, the bank statement for the month of December is presented below: Balance Deposits and Credits Checks...

  • Problem 7-3A (Part Level Submission) On May 31, 2015, Reber Company had a cash balance per...

    Problem 7-3A (Part Level Submission) On May 31, 2015, Reber Company had a cash balance per books of $7,095.50. The bank statement from New York State Bank on that date showed a balance of $6,718.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a debit memo of $48.00 for the printing of additional company checks. 2. Cash sales of $734.00 on May 12 were deposited in the bank. The cash receipts...

  • The December bank statement and cash T-account for Stewart Company follos The following information applies to...

    The December bank statement and cash T-account for Stewart Company follos The following information applies to the questions displayed below.) The December bank statement and cash T-account for Stewart Company follow BANK STATEMENT Deposits Other Date Checks Dec. 1 2 $ 420 4 5,760 80 11 470 13 1540 178,000 $27.000 Balance $38,400 37.980 32,220 32.140 58,670 57130 49.130 83.110 82.290 80,890 87.270 86,290 86.220 23 20 34.000 26 28 30 31 31 820 1.400 11.400 1.010 18.000 NSF Interest...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT