Question

Exercise 3: The following information pertains to Noura Company. 1. Cash balance per bank, July 31, R$29000. 2. July bank service charge not recorded by the depositor R$125. 3. Cash balance per books, July 31, R$25,358. 4. Deposits in transit, July 31, R$2,200. 5. Bank collected R$4,986 note for Noura in July, plus interest R$245, less fee R$35. The collection has not been recorded by Noura, and no interest has been accrued. 6. Outstanding checks, July 31, R$771. You are required to prepare the bank reconciliation at July 31 Exercise 4: The following information relates to AliaMouza Company: • AliaMouza Company in October earned an interest of $11,000 • The cash balance per bank statement on October 31 was $16,000. • Outstanding checks on October 31 totaled $1,821. • Deposits in transit on October 31 amounted to $2,500. The cash balance per books on October 31 was $35,000 AliaMouza Company later recognized a cash error of $1,590 and later on incurred bank charges of $27,731. You are required to prepare the Bank Reconciliation as on October 31.

Answer 1

Solution Exercise 3: Noura Company Bank Reconciliation July 31 R$ 29,000 Book Balance Add: R$ 2,200 Collection of note plus interest less fee (R$4,986 + R$ 245 - R$35) | Bank Balance Add: Deposit in transit R$ 25,358 R$ 5,196 R$ 30,554 Deduct: Outstanding checks R$ 31,200 Deduct: R$ 771 Bank service charge R$ 125 Adjusted Bank Balance R$ 30,429 Adjusted Book Balance R$ 30,429 Exercise 4: $35,000 Bank Balance Add: Deposit in transit I $2,500 $11,000 AliaMouza Company Bank Reconciliation October 31 $16,000 Book Balance Add: Interest earned $2,500 $18,500 Deduct: Cash error Bank service charge $1,821 $11,000 $46,000 Deduct: Outstanding checks $1,821 $1,590 $27,731 $29,321 Adjusted Bank Balance $16,679 Adjusted Book Balance $16,679