Bank reconciliation and entries Instructions: The cash account for Collegiate Sp
ID: 2498967 • Letter: B
Question
Bank reconciliation and entries
Instructions:
The cash account for Collegiate Sports Co. on November 1, 2016, indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30, 2016. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Chart of Accounts
Amount Descriptions
Bank Reconciliation
1. Prepare a bank reconciliation as of November 30. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required.
COLLEGIATE SPORTS CO.
Bank Reconciliation
November 30, 2016
1
Cash balance according to bank statement
2
3
4
5
6
Adjusted balance
7
8
Cash balance according to company’s records
9
10
11
12
13
14
Adjusted balance
Journal
2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
1
2
3
4
5
6
7
Final Question
3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 2016, what amount should be reported as cash?
A. Checks outstanding totaled $41,840. B. A deposit of $12,200, representing receipts of November 30, had been made too late to appear on the bank statement. C. A check for $7,250 had been incorrectly charged by the bank as $2,750. D. A check for $760 returned with the statement had been recorded by Collegiate Sports Co. as $7,600. The check was for the payment of an obligation to Ramirez Co. on account. E. The bank had collected for Collegiate Sports Co. $7,385 on a note left for collection. The face of the note was $7,000. F. Bank service charges for November amounted to $125. G. A check for $2,500 from Hallen Academy was returned by the bank because of insufficient funds.Explanation / Answer
1. Prepare a bank reconciliation as of November 30. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required. COLLEGIATE SPORTS CO. Bank Reconciliation $ $ November 30, 2016 1 Cash balance according to bank statement 112675 2 Less : Cheques outstanding for encashment 3 Add : Deposit made late 12200 4 Less : Cheque wrongly short debited by bank -4500 5 Less : Collections by bank -7385 6 Less : Cheque returned by bank 315 7 8 9 10 Adjusted balance 112990 1 Cash balance according to company’s records 67135 (Opening + Cheques Deposited - Cheques Issued) 2 Add : Cheques issued outstanding for clearance 41840 3 Less : Deposit on November 30 not credited -12200 4 Add : Cheque issued returned excess entered 6840 5 Add : Collection by bank 7385 6 Less : Bank Service Charges -510 7 Add : Cheque deposited returned by bank 2500 45855 8 9 10 Adjusted balance 112990 Journal 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Nov Cheque returned excess accounted for D Bank A/c DR $ 6,840 Accounts Payable - Ramirez A/c CR $ 6,840 2 Nov Note collection by bank E Bank A/c DR $ 7,385 Note Receivable A/c CR $ 7,385 3 Nov Bank Charges on Note Collection and other service charges E/F Bank Charges A/c DR $ 510 Bank A/c CR $ 510 4 Nov Cheque returned from customer G Hallen Academy A/c DR $ 2,500 Bank A/c CR $ 2,500 5 6 7 Final Question 3. If a balance sheet were prepared for Collegiate Sports Co. on November 30, 2016, what amount should be reported as cash? The amount to be reported as cash on November 30,2016 for Collegiate Sports Co. should be $ 67,135.
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