P8-26A Preparing a bank reconciliation and journal entries The August 31 bank statement of Watson Healthcare has just arrived from Banki To prepare the bank reconciliation, you gather the following data Show transcribed image text P8-26A Preparing a bank reconciliation and journal entries The August 31 bank statement of Watson Healthcare has just arrived from Banki To prepare the bank reconciliation, you gather the following data
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Submission 2 - due Saturday June 23 before 5pm - You must submit your completed Bank Reconciliation, the journal entries to bring the cash balance to the correct balance, and the Bank Reconciliation formulas tab completed. Your file must be named correctly â Please Show equations
The following information should be used to prepare a bank reconciliation for SWARS Sales and Consulting as of March 31. Prepare the reconciliation on the Bank Reconciliation tab. | |||||||||
On March 31, 2018, SWARS Sales and Consulting Co. had a cash balance in the ledger of $253,560. The March statement from Dakota State Bank showed a balance of $254,911 on March 31, 2018. The following facts regarding banking and cash activities are available. | |||||||||
The bank service charge for March was $95. | |||||||||
The bank collected $13,400, that was owed to SWARS Sales and Consulting Co by a customer, through electronic funds transfer. | |||||||||
The March 31 receipts of $24,500 were not included in the bank deposits for March. These receipts were deposited by the company in a night deposit vault on March 31. | |||||||||
Company check No. 2480 issued to Tatooine Co, a creditor, for $354 that cleared the bank in March was incorrectly entered in the cash payments journal on March 10 for $300. | |||||||||
Checks outstanding on March 31 totaled $16,500. | |||||||||
On March 31, the bank statement showed an NSF charge of $1,250 for a check received by the company from J T Hutt, a customer, on account. | |||||||||
The bank statement shows a check for $2,650 was charged to SWARS account. The check was written by BB8 Company not SWARS Sales and Consulting . | |||||||||
Prepare the bank reconciliation as of March 31. | |||||||||
Prepare the necessary entries at March31 to update the cash account. Place the Journal entries on the Journal entries Tab |
March Journal Entries | |||
1-Mar | Accounts Receivable | 3450 | |
Sales Revenue | 3,450 | ||
Cost of Goods Sold | 1450 | ||
Inventory | 1,450 | ||
3-Mar | Inventory | 2800 | |
Accounts Payable | 2,800 | ||
15-Mar | Accounts Receivable | 3750 | |
Sales Revenue | 3,750 | ||
Cost of Goods Sold | 1950 | ||
Inventory | 1,950 | ||
20-Mar | Inventory | 2000 | |
Accounts Payable | 2,000 | ||
24-Mar | Accounts Receivable | 4900 | |
Sales Revenue | 4,900 | ||
Cost of Goods Sold | 2600 | ||
Inventory | 2,600 | ||
Bank Reconciliation Journal Entries | |||
Using the following information:
(a) | The bank statement balance is $2,809. |
(b) | The cash account balance is $3,101. |
(c) | Outstanding checks amounted to $670. |
(d) | Deposits in transit are $872. |
(e) | The bank service charge is $81. |
(f) | A check for $42 for supplies was recorded as $33 in the ledger. |
Required:
Prepare a bank reconciliation for Miller Co. for August 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. âDeductâ or âAddâ will automatically appear if it is required. Enter all amounts as positive values. |
Labels and Amount Descriptions
Labels | |
August 31 | |
Amount Descriptions | |
Bank service charge | |
deposits in transit not recorded by bank | |
Error in recording | |
outstanding checks |
Bank Reconciliation
Prepare a bank reconciliation for Miller Co. for August 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. âDeductâ or âAddâ will automatically appear if it is required. Enter all amounts as positive values.
Miller Co. |
Bank Reconciliation |
1 | Cash balance according to bank statement | ||
2 | |||
3 | |||
4 | |||
5 | Adjusted balance | ||
6 | Cash balance according to companyâs records | ||
7 | |||
8 | |||
9 | Adjusted balance |