Question

Comprehensive Accounting Cycle Review 7 (Part Level Submission)

On December 1, 2019, Fullerton Company had the following account balances.

		Debit				Credit
Cash		$18,200		Accumulated Depreciation—Equipment		$3,000
Notes Receivable		2,200		Accounts Payable		6,100
Accounts Receivable		7,500		Common Stock		50,000
Inventory		16,000		Retained Earnings		14,400
Prepaid Insurance		1,600				$73,500
Equipment		28,000
		$73,500

During December, the company completed the following transactions.

Dec. 7		Received $3,600 cash from customers in payment of account (no discount allowed).
12		Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30.
17		Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
19		Paid salaries $2,200.
22		Paid Vance Co. in full, less discount.
26		Received collections in full, less discounts, from customers billed on December 17.
31		Received $2,700 cash from customers in payment of account (no discount allowed).

Adjustment data:

1.		Depreciation $200 per month.
2.		Insurance expired $400.

The statement from Jackson County Bank on December 31 showed a balance of $26,130. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank collected a note receivable of $2,200 for Fullerton Company on December 15 through electronic funds transfer.
2.		The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January.
3.		Checks outstanding on December 31 totaled $1,210.
4.		On December 31, the bank statement showed an NSF charge of $680 for a check received by the company from L. Bryan, a customer, on account.

Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $26,100. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase cash balance first. Reconcile cash balance per bank first.

JUST NEED BANK RECONCILIATION

Answer 1