Question

PART 7: BANK RECONCILIATION 25 POINTS Please prepare the bank reconciliation and the journal entries for Haupt Consulting for February 28 2018. The blank page is for you to do the bank reconciliation and the journal page is for you to do the journal entries. Haupt's February Cash from its general ledger is below: CASH CR DR JAN 31 1-Feb 4,000 CK # 207 BALANCE 10,000 6-Feb 2,500 795 CK #208 14-Feb 13-Feb 3,000 CK #209 14-Feb 1,415 20-Feb 4,800 CK # 210 28-Feb 190 27-Feb 3,600 28-Feb 400 CK #211 FEB 28 BALANCE 17,100 HAUPT'S CONSULTING BANK STATEMENT, FEBRUARY 28TH,2018 10,500 Beginnning Balance DEPOSITS AND OTHER CREDITS 750 1-Feb 2,500 8-Feb 3,000 14-Feb 20-Feb EFT HOT HOUSES-CUSTOMER COLLECTION 500 4,800 22-Feb 28-Feb INTEREST 7 11,557 CHECKS AND OTHER DEBITS EFT TO CHEAP СНЕСKS 2-Feb 17 2-Feb CK# 206 1,250 17-Feb Ска 207 4,000 18-Feb CK# 209 1,415 28-Feb EFT TO INTERNET SERVICE 125 28-Feb Ска 208 795 BANK SERVICE CHARGE 13 (7,615) ENDING BALANCE 14,442

Answer 1

Solution:

Haupt Consulting
Bank Reconciliation - February 28
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$14,442.00	Ending Balance as per cash books	$17,100.00
Additions:		Additions:
Outstanding Deposits	$3,600.00	EFT collection	$500.00
		Interest earned	$7.00
Deductions:		Deductions:
Outstanding Checks (Check 210 and 211)	$590.00	EFT to Cheap checks	$17.00
		EFT to internet service	$125.00
		Bank service charge	$13.00
Up to date cash balance as per bank	$17,452.00	Up to date cash balance as per books	$17,452.00

Journal Entries - Haupt Consulting
Date	Particulars	Debit	Credit
28-Feb	Cash Dr	$500.00
	To Account receivables - Hot Houses		$500.00
	(To record EFT collection)
28-Feb	Cash Dr	$7.00
	To Interest revenue		$7.00
	(To record interest revenue)
28-Feb	Accounts Payable - Cheap Checks Dr	$17.00
	Accounts Payable - Internet service Dr	$125.00
	To Cash		$142.00
	(To record EFT payments)
28-Feb	Miscellenaeous expense Dr	$13.00
	To Cash		$13.00
	(Being service charge debited by bank)