Question

thannel Aromal CHAPTER 7 W REQUIRED 1. Prepare a bank reconciliations of November 30, 20 2. Prepare the required journal entries. LO2) ha BANK RECONCILIATION AND RELATED JOURNAL ENTRIES The book 1 ance in the checking account of Toril Health Centers of April 30 is $4.690.30- bank statement shows an ending balance of $3,275.60. By g last mon bank reconciliation, comparing the deposits and checks written per books and bank in April, and noting the service charges and other debt and credit mos she on the bank statement, the following were found: (a) An ATM withdrawal of $200 on April 20 by Tors for personal was not recorded on the books. (b) A bank debit memo issued for an NSF check from a c o f $29.10. (c) A bank credito issued for interest of $28 cmed during the month (d) On April 30, a deposit of $1,592 was inade, which is not shown on the bark statement c) A bank debit memalsued for $24.50 for bank service changes (1) Checks No. 481, 493, and 494 for the amounts of $215, 571, and $24-30, tively, were written during April but have not yet been received by the bank. The reconciliation from the previous month showed u d ing checks totalit $418.25. One of these checks, No. 397 for $38.60, has not yet been received t the bank (b) Check No. 422 written to a creditor in the amount of $217.90 was recorded i the books as $271.90 REQUIRED 1. Prepare a bank reconciliation as of April 30. 2. Prepare the required journal entries. PETTY CASH RECORD AND JOURNAL ENTRIES On Jaly 1, a petty cash ft was established for $100. The following vouchers were issued during July Date Voucher No Purpose Amount July 1 office supplies $ 3.00 donation (Goodwill) 15.00 travel expenses 5.00 postage due 2.00 office supplies 4.00 postage due 3.50 phone call 5.00 travel expenses 11.00 withdrawal by owner L Ortiz) 20.00 copier repair (miscellaneous 18.50 REQUIRED 1. Prepare the journal entry to establish the petty cash fund. 2. Record the vouchers in the petty cash record. Total and rule the petty cash recor 3. Prepare the journal entry to replenish the petty cash fund. Make the appropria entry in the petty cash record.

Answer 1

Bank Reconciliation statement as of April 30
Particulars	Amount	Adjustment to books
Ending Bank Balance as per Books of Accounts	$   4,690.30
Less: Withdrawal from ATM	$     (200.00)	Cash Dr, Bank Cr
Less: Debit memo issued for NSF Cheque	$       (29.10)	Debit accounts receivable, credit Bank
Add: Interest on Bank balance	$         28.00	Bank Dr, Bank Interest Cr
Less: Deposit made not presented in Bank	$ (1,592.00)	No Adjustment is required as the amount is already recorded in Books of accounts
Less: Bank Service Charges	$       (24.50)	Bank Charges Dr, Bank Cr
Add: Cheque No's 481, 493, 494 issued but not presented	$       310.30	No Adjustment is required as the amount is already recorded in Books of accounts
Add: Cheque No 397 issued but not presented	$         38.60	No Adjustment is required as the amount is already recorded in Books of accounts
Add: Rectification of cheque no 422	$         54.00	Debit Creditors, credit Bank
Balance as per Books of Accounts	$   3,275.60
Journal Entries
Cash Dr	$       200.00
Bank Cr	$       200.00
(Being Cash withdrawal)
Accounts Receivable Dr	$         29.10
Bank Cr	$         29.10
(Being Debit memo issued for NSF Cheque)
Bank Dr	$         28.00
Bank Interest Cr	$         28.00
(Being Bank Interest received not recorded)
Bank Charges Dr	$         24.50
Bank Cr	$         24.50
(Being Bank Service Charges)
Creditors Dr	$         54.00
Bank Cr	$         54.00
(Being amount of excess written cheque charged back being the difference between $271.5 - $217.5)