Question

Brief Exercise 4-27
Bank Reconciliation

Hula Corp. utilizes J.P. Morgan Chase in its banking transactions. For the month of August, 2019, J.P. Morgan Chase presented Hula with its bank statement as follows:

Balance, August 31, 2019$64,900
Service charge for August100
Interest earned during August875
NSF check from Jeffrey Corp. (deposited by Hula)450
Note ($11,000) and interest ($425) collected for Hula from a customer11,425



Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Morgan Chase's cash balance:

Checking account balance per Hula’s books$53,453
Outstanding checks as of August 313,700
Deposit in transit at August 313,940
Error in recording check 9288 issued by Hula63



The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.

Required:

Prepare a bank reconciliation schedule at August 31, 2019, in proper form.

Hula Corp.
Bank Reconciliation
August 31, 2019
Cash balance from bank statement
$
Add:

Deposit in transit 
Less:

Outstanding checks 
Adjusted cash balance
$
Cash balance from company records
$
Add:

Interest earned during August $
Note and interest collected 
Less:

Recording error $
Service charge 
NSF check 
Adjusted cash balance
$

Screen Shot 2021-02-28 at 9.31.43 PM.png

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

Screen Shot 2021-02-28 at 9.39.20 PM.png

answered by: Lucero Guevara
Add a comment
Know the answer?
Add Answer to:
Brief Exercise 4-27 Bank Reconciliation
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
  • Cornerstone Exercise 4-20 Bank Reconciliation Tiny Corp. prepares monthly bank reconciliations of its checking account balance....

    Cornerstone Exercise 4-20 Bank Reconciliation Tiny Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement indicated the following: Balance, beginning of the month $15,640 Service charge for October Interest earned during October 80 NSF check from Green Corp. (deposited by Tiny) for goods 615 purchased on account Note ($2,500) and interest ($75) collected for Tiny from a 2,575 customer An analysis of canceled checks and deposits and the records of Tiny revealed the following items: Checking...

  • Exercise 4-44 (Algorithmic) Bank Reconciliation

    Exercise 4-44 (Algorithmic)Bank ReconciliationJohnson Corporation's bank statement for October reports an ending balance of $19,099, whereas Johnson's cash account shows a balance of $18,763 on October 31. The following additional information is available:A $875 deposit made on October 31 was not recorded by the bank until November.At the end of October, outstanding checks total $1,222.The bank statement shows bank service charges of $125 not yet recorded by the company.The company erroneously recorded as $973 a check that it had actually...

  • Exercise 4-44 (Algorithmic) Bank Reconciliation Johnson Corporation's bank statement for October reports an ending balance of...

    Exercise 4-44 (Algorithmic) Bank Reconciliation Johnson Corporation's bank statement for October reports an ending balance of $21,676, whereas Johnson's cash account shows a balance of $21,220 on October 31. The following additional information is available: A $755 deposit made on October 31 was not recorded by the bank until November. At the end of October, outstanding checks total $1,222. The bank statement shows bank service charges of $125 not yet recorded by the company. The company erroneously recorded as $973...

  • Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February...

    Firebird Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for February 2019 indicated the following: Balance, February 28, 2019 Service charge for February Interest earned during February NSF check from Valerie Corp. (deposited by Firebird) Note ($12,000) and interest ($350) collected from a customer of Firebird's $87,392 100 875 630 12,350 An analysis of canceled checks and deposits and the records of Firebird Corp. revealed the following items: $73,260 Checking account balance per Firebird's books...

  • An accounting clerk prepared the following bank reconciliation for Inges Corp. Inges Corp Bank Reconciliation August...

    An accounting clerk prepared the following bank reconciliation for Inges Corp. Inges Corp Bank Reconciliation August 31 Cash balance according to company records $14,690 Adjustments: Outstanding checks $1,020 Error by company in recording Ck. 2490 as $1.540 instead of $1.450 90 Note collected by bank, including $200 interest 3,200 Deposits in transit on August 31 (2,750) Bank service charges _(40) Total adjustments 1,520 Cash balance according to bank statement $16,210 (a) Use the data in the bank reconciliation to prepare...

  • bank reconciliation Bank Reconciliation The following information is available to assist you in preparing a bank...

    bank reconciliation Bank Reconciliation The following information is available to assist you in preparing a bank reconciliation for Burgoon Enterprises on May 31: a. The balance on the May 31 bank statement is $8,432.11. b. Not included on the bank statement is a $1,250 deposit made by Burgoon Enterprises late on May 31. c. A comparison between the canceled checks returned with the bank statement and the company records indicated that the following checks are outstanding at May 31: No....

  • 1. What is the purpose of a Bank Reconciliation Statement? 2.Preparing a bank Reconciliation Statement: •The...

    1. What is the purpose of a Bank Reconciliation Statement? 2.Preparing a bank Reconciliation Statement: •The July 31 bank statement for Parkview Company indicated a cash balance of $5,000.17. •The cash ledger account on that date shows a balance of $4,262.83. •Four outstanding checks totaled $717.75. •A $410.90 deposit made after banking hours on July 31 does not appear in the bank statement. •On July 30, the bank returned J.B. Ball’s NSF check for $50.25, received as payment of an...

  • Fill in the missing amounts for the following bank reconciliation: Bank reconciliation March 31, 20-- Bank...

    Fill in the missing amounts for the following bank reconciliation: Bank reconciliation March 31, 20-- Bank statement Balance $5,429 Add: Deposit in transit $5,795 Deduct: Outstanding checks     No. 211 $302     No. 225     No. 228 448 1,221 Adjusted Bank Statement Balance $          Ledger Balance of Cash $4,080 Add: Note collected by bank 622 $ Deduct: Bank service and collection charges $         NSF check from customer 105 128 Adjusted Ledger Balance of Cash $

  • Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Kaycee...

    Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Kaycee Sisters Inc. for August 20Y9: Cash balance according to the company’s records at August 31, $14,190. Cash balance according to the bank statement at August 31, $18,330. Checks outstanding, $5,710. Deposit in transit, not recorded by bank, $2,150. A check for $180 in payment of an account was erroneously recorded by Kaycee Sisters Inc. as $810. Bank debit memo for service charges, $50. Prepare...

  • Cornerstone Exercise 4-17 Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation as...

    Cornerstone Exercise 4-17 Bank Reconciliation The accountant for Bellows Corp. was preparing a bank reconciliation as of April 30. The following items were identified Bellows' book balance $28,750 900 Outstanding checks Interest earned on checking account Customer's NSF check returned by the hank 380 In addition, Bellows made an error in recording a customer's check the amount was recorded in cash receipts as $370; the bank recorded the amount correctly as $730 Required: What amount will Bellows report as its...

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