Hula corp. utilizes J.P. Morgan Chase in its banking transactions. For the month

Question

Hula corp. utilizes J.P. Morgan Chase in its banking transactions. For the month August, 2013, J.P.Morgan Chase presented Hula with its bank statement as follows: Balance, August 312, 2013 $64,900 Service charge for August 100 Interest earned during August 875 NSF check from Jeffrey Corp. (deposited by Hula) 450 Note($11,000) and interest($425) collected for Hula from a customer 11,425 Upon receiving the bank statement, Hula's accountants analyzed its cash transactions for possible reconciling items between its cash balance per books and J.P. Morgan Chase's cash balance: Checking account balance per Hula's books $53,453 Outstanding checks as of August 31 3,700 Deposit in transit at August 31,2013 3,940 Error in recording check 9288 issued by Hula 63 The correct amount of check 9288 is $770. It was recorded as a cash disbursement of $707 by mistake. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly. Required: Prepare a back reconciliation schedule at August 31,2013, in proper form.

Explanation / Answer

Solution.

Bank reconciliation statement at august 31,2016

Particulars Amount Amount Balance as per pass book    64,900.00    64,900.00 Service charge for august Interest earned during august NSF cheak from jeffery Notes and interest collected Outstanding cheak    (3,700.00) Deposit in transit      3,940.00 Error in chek amount            63.00 Adjusted bank balance    65,203.00 Balance as per cash book    53,453.00 service charge for august       (100.00) Interest earnd          875.00 NSf cheak       (450.00) Notes and interest    11,425.00 Adjusted cash balance    65,203.00

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.