The statement included a debit memo of $31.70 for the printing of additional com
ID: 2442544 • Letter: T
Question
The statement included a debit memo of $31.70 for the printing of additional company checks.
Cash sales of $631.86 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $681.86. The bank credited Logan Company for the correct amount.
Outstanding checks at May 31 totaled $560.02. Deposits in transit were $1,922.95.
On May 18, the company issued check No. 1181 for $885.00 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $858.00.
A $2,530 note receivable was collected by the bank for Logan Company on May 31 plus $73.89 interest. The bank charged a collection fee of $20.04. No interest has been accrued on the note.
Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $787.72 that was incorrectly charged to Logan Company by the bank.
On May 31, the bank statement showed an NSF charge of $678.27 for a check issued by Sandy Grifton, a customer, to Logan Company on account.
You may make changes to the column listings on the left side: cash balance per bank statement, deposit in transit, etc.
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AP8-3A On May 31, 2008, James Logan Company had a cash balance per books of $6,559.53. The bank statement from Farmers State Bank on that date showed a balance of $6,205.76. A comparison of the statement with the cash account revealed the following facts.-
The statement included a debit memo of $31.70 for the printing of additional company checks.
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Cash sales of $631.86 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $681.86. The bank credited Logan Company for the correct amount.
-
Outstanding checks at May 31 totaled $560.02. Deposits in transit were $1,922.95.
-
On May 18, the company issued check No. 1181 for $885.00 to Barry Trest, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Logan Company for $858.00.
-
A $2,530 note receivable was collected by the bank for Logan Company on May 31 plus $73.89 interest. The bank charged a collection fee of $20.04. No interest has been accrued on the note.
-
Included with the cancelled checks was a check issued by Bridgetown Company to Tom Lujak for $787.72 that was incorrectly charged to Logan Company by the bank.
-
On May 31, the bank statement showed an NSF charge of $678.27 for a check issued by Sandy Grifton, a customer, to Logan Company on account.
Explanation / Answer
Hi, The performa given is not working. The Bank reconcilation statement is given below. Please fill this in the performa. Cash Balance as per Bank Statement $6,205.76 Add: Deposit in transit $1,922.95 Cancelled check wrongly charged $ 787.72 $2,710.67 $8,916.43 Less: Checks issued but not presented $ 560.02 Adjusted Bank Balance $8,356.41 ======== Cash Balance as per Books $6,559.53 Add: Note receivable collected $2,530.00 Interest on note $ 73.89 Less: Collection charge $20.04 $2,583.85 $9,143.38 Less: Check printing charges $31.70 Sales Deposit wrongly entered $50.00 (As $681.86 instead of $631.86) Check issue wrongly entered $27.00 (As $858.00 instead of $885.00) NSF Check debited by bank $678.27 $ 786.97 Adjusted Cash Balance as per books $8,356.41 ========
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