The following data were accumulated for use in reconciling thebank account of Creative Design Co. for August 20Y6:
1. Cash balance according to thecompanyâs records at August 31, $20,870. 2. Cash balance according to the bankstatement at August 31, $37,600. 3. Checks outstanding, $23,375. 4. Deposit in transit not recorded bybank, $7,500. 5. A check for $100 in payment of anaccount was erroneously recorded in the check register as$1,000. 6. Bank debit memo for servicecharges, $45.
A. Prepare a bank reconciliation,using the format shown inExhibit 13
. Refer to the Amount Descriptions list provided for the exactwording of the answer choices for text entries. For those boxes inwhich you must enter subtracted or negative numbers use a minussign. B. If the balance sheet wereprepared for Creative Design Co. on August 31 what amount should bereported for cash? C. Must a bank reconciliation always balance(reconcile)?
AmountDescriptions Adjusted balance Bank service charge Bank error in charging check as$100 instead of $1,000 Bank error in charging check as$1,000 instead of $100 Deposit in transit, not recorded bybank Error in recording check as $100instead of $1,000 Error in recording check as $1,000instead of $100 Outstanding checks Total adjustments
The following data were accumulated for use in reconciling thebank account of Creative Design Co. for August 20Y6:
| 1. | Cash balance according to thecompanyâs records at August 31, $20,870. |
| 2. | Cash balance according to the bankstatement at August 31, $37,600. |
| 3. | Checks outstanding, $23,375. |
| 4. | Deposit in transit not recorded bybank, $7,500. |
| 5. | A check for $100 in payment of anaccount was erroneously recorded in the check register as$1,000. |
| 6. | Bank debit memo for servicecharges, $45. |
| A. | Prepare a bank reconciliation,using the format shown in Exhibit 13 . Refer to the Amount Descriptions list provided for the exactwording of the answer choices for text entries. For those boxes inwhich you must enter subtracted or negative numbers use a minussign. | |||||||||||||||||||
| B. | If the balance sheet wereprepared for Creative Design Co. on August 31 what amount should bereported for cash? | |||||||||||||||||||
| C. | Must a bank reconciliation always balance(reconcile)?
|
Related questions
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:
| 1. | Cash balance according to the companyâs records at August 31, $18,257. |
| 2. | Cash balance according to the bank statement at August 31, $27,261. |
| 3. | Checks outstanding, $14,624. |
| 4. | Deposit in transit, not recorded by bank, $6,131. |
| 5. | A check for $58 in payment of an account was erroneously recorded in the check register as $580. |
| 6. | Bank debit memo for service charges, $11. |
Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.
Chart of Accounts
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Journal
Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
| 1 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 |
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $34,800. During October, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $6,340. B. A deposit of $1,643 representing receipts of October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal Bike Co. $5,565 on a note left for collection. The face of the note was $5,300. D. A check for $260 returned with the statement had been incorrectly charged by the bank as $620. E. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $22. G. A check for $1,464 from Bay View Condos was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
| Adjusted balance | |
| Bank error in charging check as $260 instead of $620 | |
| Bank error in charging check as $620 instead of $260 | |
| Bank service charges | |
| Check returned because of insufficient funds | |
| Company error in recording note collected by bank | |
| Deposit of October 31, not recorded by bank | |
| Error in recording check | |
| Outstanding checks | |
| Proceeds of note collected by bank, including $265 interest | |
| Total adjustments |
1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Score: 48/112
| Coastal Bike Co. |
| Bank Reconciliation |
| October 31, 20Y9 |
| 1 | Cash balance according to bank statement | â | |
| 2 | Adjustments: | ||
| 3 | â | â | |
| 4 | â | â | |
| 5 | â | ||
| 6 | |||
| 7 | Adjusted balance | ||
| 8 | |||
| 9 | Cash balance according to companyâs records | ||
| 10 | Adjustments: | ||
| 11 | |||
| 12 | â | ||
| 13 | â | ||
| 14 | |||
| 15 | |||
| 16 | â |
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3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
