The cash account for All American Sports Co. on April 1, 20Y5, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: Checks outstanding totaled $14,300. A deposit of $9,275, representing receipts of April 30, had been made too late to appear on the bank statement. A check for $720 had been incorrectly charged by the bank as $270. A check for $110 returned with the statement had been recorded by All American Sports Co. as $1,100. The check was for the payment of an obligation to Garber Co. on account. The bank had collected for All American Sports Co. $4,320 on a note left for collection. The face of the note was $4,000. Bank service charges for April amounted to $75. A check for $1,300 from Bishop Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of April 30. 2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. create a balance sheet on the Increase in cash and decrease in cash

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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The cash account for All American Sports Co. on April 1, 20Y5, indicated a balance of $23,600. During April, the total cash deposited was $80,150, and checks written totaled $72,800. The bank statement indicated a balance of $40,360 on April 30, 20Y5. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $14,300.
A deposit of $9,275, representing receipts of April 30, had been made too late to appear on the bank statement.
A check for $720 had been incorrectly charged by the bank as $270.
A check for $110 returned with the statement had been recorded by All American Sports Co. as $1,100. The check was for the payment of an obligation to Garber Co. on account.
The bank had collected for All American Sports Co. $4,320 on a note left for collection. The face of the note was $4,000.
Bank service charges for April amounted to $75.
A check for $1,300 from Bishop Co. was returned by the bank because of insufficient funds.

Instructions:

1. Prepare a bank reconciliation as of April 30.

2. Illustrate the effects on the accounts and financial statements of the bank reconciliation. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts.

create a balance sheet on the Increase in cash and decrease in cash

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