DUE ASAP POINTS IMMEDIATLY Exercise 7-9 This information relates to the Cash acc

ID: 2504107 • Letter: D

Question

DUE ASAP POINTS IMMEDIATLY

Exercise 7-9 This information relates to the Cash account in the ledger of Hawkins Company. Balance September 1-$18,070; Cash deposited $64,000 Balance September 30-$19,270; Checks written-$62,800 The September bank statement shows a balance of $18,170 at September 30 and the following memoranda Credits Debits Collection of $2,257 note plus interest $2,287 NSF check: H Juno $1,017 $30 63 Safety deposit box Interest earned on checking account rent At September 30, deposits in transit were $5,213 and outstanding checks totaled $2,858 (a) Prepare the bank reconciliation at September 30, 2012 HAWKINS COMPANY Bank Reconciliation September 30, 2012 Add: Less

Explanation / Answer

PART-A:-

BANK BALANCE AS PER CASH BOOK AS ON SEP 30

19270

ADJUSTMENTS:-

ADD:-

a)COLLECTION OF NOTE PLUS INTEREST [2257+30]

2287

b)INTEREST EARNED ON CHECKING ACOOUNT

c)OUTSTANDING CHEQUES

2858

LESS:-

a)NSF CHEQUE: H.JUNO

(1017)

b)SAFETY DEPOSIT BOX RENT

(78)

C)DEPOSITS IN TRANSIT

(5213)

BANK BALANCE AS PER BANK STATEMENT

18170

PART-B:-

DEBIT CASH BOOK [2257+30] = 2287

CREDIT NOTE RECIEVABLE = 2257

CREDIT INTEREST ON NOTE = 30

[TO RECORD COLLECTION OF NOTE RECIEVABLE BY BANK]

DEBIT CASHBOOK = 63

CREDIT INTEREST ON CHECKING ACCOUNT = 63

[TO RECORD INTEREST EARNED ON CHECKING ACCOUNT]

DEBIT ACCOUNTS RECIEVABLE = 1017

CREDIT CASHBOOK = 1017

[TO RECORD NSF CHEQUE]

DEBIT SAFETY DEPOSIT BOX RENT = 78

CREDIT CASHBOOK = 78

[TO RECORD CHARGESFOR SAFETY DEPOSIT BOX RENT