Question

Lesson 7 AutoSave File Home Insert Page Layout Formulas Data Review View Help p T General Arial Paste Numb Font Alignment Clipboard H38 1Assignment II: Bank reconciliation and adjusting entries 2 Using the below infromation, prepare a bank reconcilation and the proper adjustments from the reconcilation 5 At the end of the month, the company's book Cash balance is $27,497 and the bank 6 statements shows a cash balance of $27,233 7 . Check # 3031 for $1,482 #3065 for $382; and #3069 for S2281 have been written and 8 reduced from the books, but not from the bank's balance 9 Check #3056 for rent was written and drawn from the bank for $1,270 but mistakenly 10 entered into the company books as $1,250 11 The bank collected $8,000 cash for a note, deducting a $45 collection fee, and added 12 the remaining to the company's account. This information has not been recorded in the 13 company's books A check received from a customer was returned at the bank for NSF. The check was 14 this NSF error in their books 5 company's books 16 added to the company's books, but was not on the statement 18 TASK 1: Prepare the Bank Reconcilation using the above information written for $795 and the bank charged a $10 NSF fee. The company has not received The bank charged a $25 fee for bank services. This has not been recorded in the The company placed a deposit in the night deposity of $11,514. This amount has been signment Assignment Assignment Il O Type here to search Lesson 7 Assignmes AutoSave S File Home InsertPage Layout Formulas Data Review View Help Tell me wha Arial General Paste Merge & Center" Clipboard Font Alignment Number H38 8 TASK 1: Prepare the Bank Reconcilation using the above information Bank Reconcilation End of Month 2. Bank Statement Balance| -1 ] Book Balance 3 Add Add 5 Deduct 6 Check # Deduct 0 Adjusted Bank Balance Adusted Book Balance entries based on the reconciliation 4 Date Explanation Debit Credit Assignment Assignment i Assignment ll Type here to search

Answer 1

Solution 1:

Martin Company
Bank Reconciliation
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$27,233.00	Ending Balance as per cash books	$27,497.00
Additions:		Additions:
Outstanding cash receipt	$11,514.00	Note Collection by bank (net of collection fee)	$7,955.00
Deductions:		Deductions:
Outstanding Checks (Check no 3031, 3065, 3069) ($1,482 + $382 + $2281)	$4,145.00	Incorrect recording of check no 3056	$20.00
		NSF Check (Including Fee)	$805.00
		Service charge	$25.00
Up to date cash balance as per bank	$34,602.00	Up to date cash balance as per books	$34,602.00

Solution 2:

Journal Entries
Event	Particulars	Debit	Credit
1	Cash Dr	$7,955.00
	Expenses for collection Dr	$45.00
	To Note receivables		$8,000.00
	(To record note collection by bank)
2	Rent expense Dr	$20.00
	To Cash		$20.00
	(To record correction entry for check no 3056)
3	Accounts receivables Dr	$805.00
	To Cash		$805.00
	(To record NSF Check from customer)
4	Miscellenous Expenses Dr	$25.00
	To Cash		$25.00
	(Being service charges debited by bank)