Question

VJUU WCnetuy recorded by the company as $230. 4. Check for $1,100 incorrectly charged by bank as $110. 5. Deposit in transit, $3,300. 6. Outstanding checks, $7,950. 7. Note collected by bank, $10,500. EX 8-17 Entries based on bank reconciliation OBJ. 5 Which of the reconciling items listed in Exercise 8-16 require an entry in the company's accounts? ✓ Adjusted balance: $32,630 Show Me How EX 8-18 Bank reconciliation OBJ. 5 The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31, $32,110. 2. Cash balance according to the bank statement at July 31, $31,350. 3. Checks outstanding, $2,870. 4. Deposit in transit, not recorded by bank, $4,150. 5. A check for $170 in payment of an account was erroneously recorded in the check register as $710. 6. Bank debit memo for service charges, $20. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. b. If the balance sheet is prepared for Mathers Co. on July 31, what amount should be reported for cash? c. Must a bank reconciliation always balance (reconcile)?

using the data presented in ex8-18 journalize the entry or entries that should be made by the company

Answer 1

Answer- MATHERS COMPANY

Bank Reconciliation

For the Month Ended July 31

Particulars	Amount ($)	Amount ($)
Cash Balance according to Bank Statement		31,350
Adjustments:-
Add: Deposit in transit not recorded by bank	4,150
Less: Outstanding checks	2,870	1,280
Adjusted Balance (Cash)		$32,630
Cash Balance according to company records		32,110
Adjustments:-
Add: Error in recording checks as $710 instead of $170 ($710-$170)	540
Less: Bank services charges	20	520
Adjusted Balance (Cash)		$32,630

b-The amount should be reported on July 31, $32,630 cash in Balance Sheet prepared for Mathers Co.

c-Yes, a bank reconciliation always must be reconciled:-

Date	Account Title and Explanation	PR NO.	Debit ($)	Credit ($)
	Accounts Payable		540
	Cash			540
	(To record error in check more than recorded in check register)
	Bank Service Expenses		20
	Cash			20
	(To record bank service charges)

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