ACC 311 Study Guide - Midterm Guide: Bank Reconciliation, Finance Charge, Origination Fee

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crimsoncod838

12 Dec 2017

School

University of Miami

Department

Accounting Business Administration

Course

ACC 311

Professor

andrewmcmartin

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Document Summary

First, find true deposits for current month and dit (bank) and oc (books) For bank balance, deposits per bank minus deposits in transit from previous month. Dit from month, true deposits minus deposits per books. For books balance, checks per bank minus oc from previous month. Oc from month, true deposits minus checks per book. Next, do actual bank reconciliation for that month. Jan 1: on jan 1, comp a pledged ,500,000 of a/r as collateral on a ,300,000 loan from bank 1. Bank charged an origination fee equal to 3% of pledged, and note bears interest at 12% per year: as of jan 31, comp a collected ,000 on assigned accounts, but wrote off ,000 of assigned accounts as uncollectible. A/r: comp a immediately remitted the cash collected to bank, along with interest payment for one month the note was outstanding. On may 1, comp a sold ,600,000 of a/r to bank 1 without recourse.

Related Questions

In preparing its bank reconciliation for the month of April2014, Dimensions, Inc. has available the following information.

Balance per bank statement,4/30/14 $40,920

NSF check returned with 4/30/14 bankstatement 1,350

Deposits in transit,4/30/14 10,500

Outstanding checks,4/30/14 15,600

Bank service charges forApril 60

What should be the adjusted cash balance at April 30, 2014?

tanserval418

El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:

Balance per bank, November 30		$3,281
Add: Deposits outstanding		$1,250
Less: Checks outstanding
#363	$128
#365	$206
#380	$61
#381	$91
#382	$390	($876)
Adjusted balance per bank, November 30		3,655

The company’s general ledger checking account showed the following for December:

Balance, December 1	$3,655
Receipts	$43,150
Disbursements	($42,353)
Balance, December 31	$4,452

The December bank statement contained the following information:

Balance, December 1	$3,281
Deposits	$43,500
Checks processed	($42,418)
Service charges	($27)
NSF checks	($490)

Balance, December 31	3,846

The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $430 was correctly recorded by the bank but was incorrectly recorded on the books as a $340 disbursement for advertising expenses. Included in the bank’s deposits is a $1,800 deposit incorrectly credited to the company’s account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.

Required
1. Prepare a bank reconciliation for the El Gato checking account on December 31, 2018.
2. Prepare any necessary adjusting journal entries indicated.

pinkcoyote651

El Gato Painting Company maintains a checking account atAmerican Bank. Bank statements are prepared at the end of eachmonth. The November 30, 2016, reconciliation of the bank balance isas follows:

Balance per bank, November 30		$3,231
Add: Deposits outstanding		1,200
Less: Checks outstanding
#363	$123
#365	201
#380	56
#381	86
#382	340	(806)
Adjusted balance per bank, November 30		$3,625

The company's general ledger checking account showed thefollowing for December:

Balance, December 1	$ 3,625
Receipts	42,650
Disbursements	(41,853)
Balance, December 31	$ 4,422

The December bank statement contained the followinginformation:

Balance, December 1	$3,231
Deposits	43,000
Checks processed	(41,918)
Service charges	(22)
NSF checks	(440)
Balance, December 31	$3,851

The checks that were processed by the bank in December includeall of the outstanding checks at the end of November except forcheck#365. In addition, there are some December checks that had notbeen processed by the bank by the end of the month. Also, youdiscover that check#411 for $320 was correctly recorded by the bankbut was incorrectly recorded on the books as a $230 disbursementfor advertising expense. Included in the bank's deposits is a$1,300 deposit incorrectly credited to the company's account. Thedeposit should have been posted to the credit of the Los GatosCompany. The NSF checks have not been redeposited and the companywill seek payment from the customers involved.

Required:

1. Prepare a bank reconciliation for the ElGato checking account at December 31, 2016.

2. Prepare any necessary adjusting journalentries indicated.

ACC 311 Study Guide - Midterm Guide: Bank Reconciliation, Finance Charge, Origination Fee

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