A company general ledger shows a checking account balance of $22,790 on July 31, Year 1. The July cash receipts of $1,705, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $37. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,280. The bank statement shows a balance of $22,328 on July 31. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, Year 1. (Amounts to be deducted should be indicated with a minus sign.) 2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Solution:
Bank Reconciliation | |
Jul-31 | |
Cash balance per Bank | $22,328 |
Add: Deposit in transit | $1,705 |
Subtotal | $24,033 |
Less: Outstanding checks | $1,280 |
Adjusted Balance per bank | $22,753 |
Cash balance per General ledger | $22,790 |
Less: Bank Charges | $37 |
Adjusted Balance per book | $22,753 |
S.No | Particulars | Debit | Credit |
a. | Miscellaneous expense | $37 | |
Cash | $37 | ||
(to record bank service chages) |
A company general ledger shows a checking account balance of $22,790 on July 31, Year 1....
Spielberg Company's general ledger shows a checking account balance of $22,810 on July 31, 2021. The July cash receipts of $1,725, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $39. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for...
E4-9 Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2021. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $55. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except...
Spielberg Company's general ledger shows a checking account balance of $22,970 on July 31, 2018. The July cash receipts of $1,885, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $55. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for...
A company general ledger shows a checking account balance of $22,820 on July 31, Year 1. The July cash receipts of $1,735, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $40. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except...
Exercise 4-9A Calculate the balance of cash using a bank reconciliation (L04-5) Spielberg Company's general ledger shows a checking account balance of $22.850 on July 31, 2021. The July cash receipts of $1765. included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $43. The bank processes all checks written by the company...
Exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5) Spielberg Company's general ledger shows a checking account balance of $22,950 on July 31, 2021. The July cash receipts of $1,865, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $53. The bank processes all checks written by the company...
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,436. The company's cash receipts for the month total $74,580, of which $71,360 has been deposited in the bank. In addition, the company has written checks for $72,506, of which $71,216 has been processed by the bank The bank statement reveals an ending balance of $12,676 and includes the following items not yet recorded by Damon: bank service fees of $280, note receivable collected by the...
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,924. Cash receipts yet to be deposited into the checking account total $3,318, and checks written by the academy but not yet processed by the bank total $1,405. The company's balance of cash does not reflect a bank service fee of $33 and interest earned on the checking account of $44. These amounts are included in the balance of cash of $6,022...
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8.439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the...
On October 31, 2021. Damon Company's general ledger shows a checking account balance of $8,430. The company's cash receipts for the month total $74,540, of which $71,350 has been deposited in the bank. In addition, the company has written checks for $72,500, of which $71,180 has been processed by the bank. The bank statement reveals an ending balance of $12,530 and includes the following items not yet recorded by Damon: bank service fees of $260, note receivable collected by the...