Question

OBLEM. Write your answers in the areas provided. The answers must be legible and correctly heled. Put answers in the order presented. 11) The following information is available to reconcile Diddle Co.'s book balance of cash with its bank statement cash balance as of April 30, 2019. The April 30 cash balance according to the accounting records is S68,356, and the bank statement cash balance for that date is $73,525. a. The bank erroneously cleared a $480 check against the account in April that was not issued by Diddle. The check documentation included with the bank statement indicates the check was actually issued by Flushing .. b. $45 interest earned on Diddle's cash balance in the bank is not yet recorded by Diddle. c. When the April checks are compared with entries in the accounting records, it is found that Check No. 1828 had been correctly drawn for $1,530 to pay for advertising but was erroneously entered in the accounting records as $1,350. d. The bank collected $9,970 cash on a note receivable for Diddle Diddle did not record this transaction before receiving the statement. e. The bank statement includes an NSF check for $891 received from a customer. Diddle did not record this NSF check before receiving the statement. f. Diddle's April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30 bank statement. g. Diddle's April 30 cash payments journal indicates that Check No. 1837 for $596 and Check No. 1840 for $1,211 were both written and entered in the accounting records, but are not among the canceled checks. 1. Prepare the bank reconciliation for this company as of April 30.

Answer 1

Solution DIDDLE COMPANY Bank Reconciliation April 30, 2019 Cash balance per bank statement Add: Deposit in transit (April 30 deposit) Check errorneously paid $73,525 $5,102 $480 $5,582 $79,107 Outstanding checks No. 1837 No. 1840 $596 $1,211 $1,807 $77,300 Adjusted cash balance per bank $68,356 Cash balance per books Add: Interest on checking account Collection of note receivable $45 $9,970 $10,015 $78,371 Less: Error in recording check ($1,530 - $1,350) NSF check $180 $891 $1,071 $77,300 Adjusted cash balance per books