this part l did correct but journal l did not do as below Problem 6-4A Prepare a
ID: 2544702 • Letter: T
Question
this part l did correct but journal l did not do as below
Problem 6-4A Prepare a bank reconciliation and record adjustments LO P3 /The following information applies to the questions displayed below] The following information is avallable to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31, 2013 a. On July 31, the company's Cash account has a $27,497 deblt balance, but its July bank statement shows a $27,233 cash balance b. Check No. 3031 for $1,482 and Check No. 3040 for $558 were outstanding on the June 30 bank reconclllation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 s not. Also, Check No. 3065 for $382 and Check No. 3069 for $2,281, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries In the accounting records, It Is found that Check No. 3056 for July rent was correctly written and drawn for $1,270 but was erroneously entered in the accounting records as $1,250 A credit memorandum enclosed with the July bank statement Indicates the bank collected $8,000 cash on a non-lnterest-bearing note for Branch, deducted a $45 collection fee, and credited the remainder to Its account. Branch had not recorded thlis event before recelving the statement. d. e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been f. Enclosed with the July statement is a $25 deblt memorandum for bank services. It has not yet been g. Branch's July 31 dally cash recelpts of $11,514 were placed In the bank's night depository on that date, but recelved from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. recorded because no prevlous notification had been recelved. do not appear on the July 31 bank statement. References Section Break Problem 6-4A Prepare a bank reconciliation and record adjustments LO P3Explanation / Answer
Answer 6-4A-1. Branch Company Bank Recocilation July 31, 2017 Bank's Cash Balance Company's Cash Balance Per Bank Statement 27,233.00 Per General Ledger 27,497.00 Receipts Not Deposited in Bank 11,514.00 Proceeds of Note Less Collection Charge ($8,000 - $45) 7,955.00 Outstanding Checks NSF Check (795.00) Check No - 3031 (1,482.00) Bank service Charges for NSF Check (10.00) Check No - 3065 (382.00) Bank Service Fees for July (25.00) Check No - 3069 (2,281.00) Check - Error in recording Chk No 3056 ($1,250 - $1,270) (20.00) Bank Balance after Reconcilation 34,602.00 Company Balance per Reconcilation 34,602.00 Answer 6-4A-2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. No Entry b. No Entry c. Rent expenses Dr. 20.00 To Cash 20.00 d. Cash Dr. 7,955.00 Bank Charges Dr. 45.00 To Notes Receivables 8,000.00 e. Accounts receivables Dr. 795.00 Bank Charges Dr. 10.00 To Cash 805.00 f. Bank Charges Dr. 25.00 To Cash 25.00 g. No Entry No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors Answer 6-5A-1 CHAVEZ COMPANY Bank Recocilation Sep 30, 2015 Bank's Cash Balance Company's Cash Balance Per Bank Statement 18,453.25 Per General Ledger 17,404.20 Add: Add: Deposit of Sep 30, not recorded by bank 1,682.75 Proceeds of note collected by bank 1,500.00 Bank Interest Recd 12.50 1,512.50 20,136.00 18,916.70 Less: Less: Outstanding Checks: Bank Service Charges - Note Collected (15.00) Chq No 5893 (494.25) Error in recording check No. 5904 - ($2,060 - $2,090) (30.00) Chq No 5906 (982.30) NSF Check (600.25) (645.25) Chq No 5908 (388.00) (1,864.55) Bank Balance after Reconcilation 18,271.45 Company Balance per Reconcilation 18,271.45 Answer 6-5A-2. CHAVEZ COMPANY Journal Entry Date Particulars Dr. Amt. Cr. Amt. 30-Sep Cash Dr. 12.50 To Interest Earned 12.50 (To Record Interest Earned) 30-Sep Cash Dr. 1,485.00 Collection Expenses Dr. 15.00 To Notes Receivables 1,500.00 (To record note collection less fees) 30-Sep Accounts Rec. - S Nilson Dr. 600.25 To Cash 600.25 (To Charge account for NSF check plus fee) 30-Sep Computer Equipment Dr. 30.00 To Cash 30.00 (To correct an entry error) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors
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