Question 1: Success Company has just received its bank statement for the month of July 201X from its bank. No outstanding checks were carried over from June and no deposits in transits were noted at the end of June. The bank statement and the cash account, summarized below, are to be reconciled for the month of July 201X. Bank Statement Balance, July 1 $1310 Deposits recorded $19456 Notes collected as agent Interest $10100 collected for July $360 Service charges ($100) Checks cleared ($18400) NSF check ($180) Balance, July 31 $12546 Cash Account: Balance, July 1 $1310 Deposits $33,000 Checks written ($20,508) Balance, July 31 $13,802 Required: (a) Prepare the Bank Reconciliation Statement of Success Company for the month of July 201X. (b) Prepare the journal entries to adjust the account at 31 July, 201X. Question 2 : At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information: (1) Service charge by bank, $100. (2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200. (3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony’s account by the bank and returned with the notation “NSF.” (4) Harmony’s records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015. (5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400. (6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies, correctly written in the amount of $1,960 but erroneously recorded in Harmony’s accounting records as $1,690. Required: (a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015. (b) Give any journal entries that should be made as a result of the bank reconciliation.
Question 1: Success Company has just received its bank statement for the month of July 201X from its bank. No outstanding checks were carried over from June and no deposits in transits were noted at the end of June. The bank statement and the cash account, summarized below, are to be reconciled for the month of July 201X. Bank Statement Balance, July 1 $1310 Deposits recorded $19456 Notes collected as agent Interest $10100 collected for July $360 Service charges ($100) Checks cleared ($18400) NSF check ($180) Balance, July 31 $12546 Cash Account: Balance, July 1 $1310 Deposits $33,000 Checks written ($20,508) Balance, July 31 $13,802 Required: (a) Prepare the Bank Reconciliation Statement of Success Company for the month of July 201X. (b) Prepare the journal entries to adjust the account at 31 July, 201X. Question 2 : At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information: (1) Service charge by bank, $100. (2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200. (3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony’s account by the bank and returned with the notation “NSF.” (4) Harmony’s records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015. (5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400. (6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies, correctly written in the amount of $1,960 but erroneously recorded in Harmony’s accounting records as $1,690. Required: (a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015. (b) Give any journal entries that should be made as a result of the bank reconciliation.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5E
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Question 1:
Success Company has just received its bank statement for the month of July 201X from its bank. No outstanding checks were carried over from June and no deposits in transits were noted at the end of June. The bank statement and the cash account, summarized below, are to be reconciled for the month of July 201X.
Bank Statement
Balance, July 1 $1310
Deposits recorded $19456
Notes collected as agent Interest $10100
collected for July $360
Service charges ($100)
Checks cleared ($18400)
NSF check ($180)
Balance, July 31 $12546
Cash Account:
Balance, July 1 $1310
Deposits $33,000
Checks written ($20,508)
Balance, July 31 $13,802
Required:
(a) Prepare the Bank Reconciliation Statement of Success Company for the month of July 201X.
(b) Prepare the journal entries to adjust the account at 31 July, 201X.
Question 2 :
At 31 March 2015, the balance of the Cash account according to the records of Harmony Company was $14,432. The 31 March bank statement showed a balance of $17,596. You are going to prepare the bank reconciliation of Harmony Company at 31 March 2015, using the following supplementary information:
(1) Service charge by bank, $100.
(2) The bank has collected a total of $10,100 and directly credited to Harmony, which represents the principal and interest owed by Peace Company. Interest amounted to $200.
(3) A check for $180 drawn by a customer, Charlotte Lava, but deducted from Harmony’s account by the bank and returned with the notation “NSF.”
(4) Harmony’s records showed that it has made a total deposit of $32,088 during March 2015, but according to the bank statement it only showed deposits of $18,544. No deposit-in-transit is carried forwarded from February 2015.
(5) Outstanding checks: no. 18120, $280; no. 18121, $1,864; no. 18127, $614; no. 18134, $4,400.
(6) Harmony’s check no. 18114, issued in payment of $1,960 worth of supplies, correctly written in the amount of $1,960 but erroneously recorded in Harmony’s accounting records as $1,690.
Required:
(a) Prepare the bank reconciliation for Harmony Company as of 31 March 2015.
(b) Give any journal entries that should be made as a result of the bank reconciliation.
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