Group AssignmentBank reconciliations
The following cash and bank information is available for three companies at June 30, 2012.
Cash and Adjustment Information | Peach Co. | Apple Co. | Pear Co. |
Unadjusted cash balance per books, 6/30 | $45,620 | $32,450 | $23,467 |
Outstanding checks | 1,345 | 2,478 | 2,540 |
Service charge | 50 | 75 | 35 |
Balance per bank statement, 6/30 | 48,632 | 37,176 | 24,894 |
Credit memo for collection of notes receivable | 4,500 | 5,600 | 3,800 |
NSF check | 325 | 145 | 90 |
Deposits in transit | 2,500 | 3,200 | 4,800 |
Credit memo for interest earned | 42 | 68 | 12 |
Required
a. Organize the class into three sections and divide each section into groups of three to five students. Assign Peach Co. to section 1, Apple Co. to section 2, and Pear Co. to section 3.
Group Tasks
(1) Prepare a bank reconciliation for the company assigned to your group.
(2) Prepare any necessary journal entries for the company assigned to your group.
(3) Select a representative from a group in each section to put the bank reconciliation and required journal entries on the board.
Class Discussion:
b. Discuss the cause of the difference between the unadjusted cash balance and the ending balance for the bank statement. Also, discuss types of adjustment that are commonly made to the bank balance and types of adjustment that are commonly made to the unadjusted book balance.
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