Question

Ivan Enterprise's bank statement for the month of May showed a balance per bank of $3,025....

Ivan Enterprise's bank statement for the month of May showed a balance per bank of $3,025. The company's Cash account in the general ledger had a balance of $2,220 at May 31. Other information is as follows:

(1)    Cash receipts for the last week of May recorded on the company's books were $2,200 but this amount does not appear on the bank statement.

(2)    The bank statement shows a debit memorandum for $40 for check printing charges.

(3)    Check No. 189 payable to T. Francis Company was written for $230, but recorded in the records for $320.

(4)    The total amount of checks still outstanding at May 31 amounted to $2,610.

(5)    A check for $325 drawn by Irving Enterprises was included in the bank statement. The check had cleared Ivan’s account and was deducted by the bank from Ivan’s balance.    

(6)    The bank returned an NSF check from a customer for $420.

  1. The bank included a credit memorandum for $1,090 that represents collection of a customer's note by the bank for the company; principal amount of the note was $1,000 and interest was $90. Ivan had accrued the interest on the note.

Instructions

(a) Prepare a bank reconciliation for Ivan Enterprises at May 31.

(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution a:

Ivan Enterprises
Bank Reconciliation - May 31
Bank's Cash balance Company's cash balance
Particulars Amount Particulars Amount
Ending balance as per Bank Statements $3,025.00 Ending Balance as per cash books $2,220.00
Additions: Additions:
Outstanding Deposits $2,200.00 Note Collection (including interest) $1,090.00
Bank Error $325.00 Incorrect recording of check no 189 $90.00
Deductions: Deductions:
Outstanding Checks $2,610.00 NSF check $420.00
Check Printing charges $40.00
Up to date cash balance as per bank $2,940.00 Up to date cash balance as per books $2,940.00

Solution b:

Journal Entries - Ivan Enterprise
Date Particulars Debit Credit
31-May Cash Dr $1,090.00
      To Note receivables $1,000.00
      To Interest Revenue $90.00
(Being interest and note collection by bank)
31-May Cash Dr $90.00
      To Accounts payable $90.00
(To record correction entry for check)
31-May Accounts Receivables Dr $420.00
       To Cash $420.00
(Being cheque dishonored by bank)
31-May Miscellaneous expenses Dr $40.00
       To Cash $40.00
(Being check printing charges debited by bank)
Add a comment
Know the answer?
Add Answer to:
Ivan Enterprise's bank statement for the month of May showed a balance per bank of $3,025....
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
  • Lyleen Boat Company's bank statement for the month of September showed a balance per bank of $7,000.

    Lyleen Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,459 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,700 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for check printing charges. (3) Check No. 119 payable to Mann Company...

  • Laymon Boat Company's bank statement for the month of September showed a balance per bank of...

    Laymon Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $4,667 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were S5,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $60 for check printing charges. (3) Check No. 119 payable...

  • The Oriole Boat Company's bank statement for the month of November showed a balance per bank...

    The Oriole Boat Company's bank statement for the month of November showed a balance per bank of information is as follows: the company's Cash court in the general lederhad balance of 57378 November Other (1) Cash receipts for November 30 recorded on the company's books were $7630 but this amount does not appear on the bank statement (2) The bank statement shows a debit memorandum for $40 for check printing charges (3) Check No 119 payable to Ivanhoe Company was...

  • Seaside Boat Company's bank statement for the month of September showed a balance per bank of...

    Seaside Boat Company's bank statement for the month of September showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $4,667 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $4,200 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for check printing charges. (3) The total amount of...

  • Exercise 202 The Hartman Boat Company's bank statement for the month of November showed a balance...

    Exercise 202 The Hartman Boat Company's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the accounting records had a balance of $5,659 at November 30. Other information is as follows: (1) Cash receipts for November 30 recorded on the company's books were $6,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $40 for check printing charges. (3) Check...

  • The Pharoah Boat Company's bank statement for the month of November showed a balance per bank...

    The Pharoah Boat Company's bank statement for the month of November showed a balance per bank of $8,900. The company's Cash account in the general ledger had a balance of $6,269 at November 30. Other information is as follows: (1) Cash receipts for November 30 recorded on the company's books were $6,390 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for $50 for check printing charges. (3) Check No. 119...

  • PROBLEM 4: 25 POINTS White Water Kayak Company's bank statement for the month of September showed...

    PROBLEM 4: 25 POINTS White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balance of $5,573 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement (2) The bank statement shows a debit memorandum for $25 for check printing charges...

  • Bank Reconciliation The Seattle Boat Company's bank statement for the month of September indicated a balance...

    Bank Reconciliation The Seattle Boat Company's bank statement for the month of September indicated a balance of $15,400. The company's cash account in the general ledger showed a balance of $12,450 on September 30. Other relevant information includes the following: 1. Deposits in transit on September 30 total $11,440. 2. The bank statement shows a debit memorandum for a check printing charge of $88. 3. Check number 238 payable to Simon Company was recorded in the accounting records for $546...

  • Branson Company received its bank statement for the month ending May 31, 2022

    ranson Company received its bank statement for the month ending May 31, 2022, and reconciled the statement balance to the May 31, 2022, balance in the Cash account. The reconciled balance was determined to be $36,400. The reconciliation recognized the following items:A deposit made on May 31 for $22,700 was included in the Cash account balance but not in the bank statement balance.Checks issued but not returned with the bank statement were Number 673 for $4,550 and Number 687 for...

  • PROBLEM 4:25 POINTS White Water Kayak Company's bank statement for the month of September showed a...

    PROBLEM 4:25 POINTS White Water Kayak Company's bank statement for the month of September showed a balance per bank of $6,900. The company's Cash account in the general ledger had a balance of $5,573 at September 30. Other information is as follows: (1) Cash receipts for September 30 recorded on the company's books were $5,850 but this amount does not appear on the bank statement (2) The bank statement shows a debit memorandum for $25 for check printing charges. (3)...

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