The books of Schexnayder, Inc. disclosed a cash balance of $68,757 on June 30. T
ID: 2590677 • Letter: T
Question
The books of Schexnayder, Inc. disclosed a cash balance of $68,757 on June 30. The bank statement as of June 30 showed a balance of $54,780. Additional information that might be useful in reconciling the two balances follows:
(a)
Check number 748 for $3,000 payable to a merchandise supplier was originally recorded on the books as $4,500.
(b)
A customer's check was returned on June 29. The bank charged Schexnayder’s account for $14,265, including a fee of $42.
(c)
The deposit from customers paying on account of June 24 was recorded on the books as $2,895, but it was actually a deposit of $2,700.
(d)
Outstanding checks totaled $9,885 as of June 30.
(e)
There were bank service charges for June of $210 not yet recorded on the books.
(f)
Schexnayder’s account had been charged on June 26 for a customer's NSF check for $1,296.
(g)
Schexnayder properly deposited $600 on June 3 that was not recorded by the bank.
(h)
Receipts of June 30 for $13,425 were recorded by the bank on July 2.
(i)
A bank memo stated that a customer's note for $4,500 and interest of $165 had been collected on June 27, and the bank charged a $36 collection fee.
2-1. Prepare a bank reconciliation statement, using the two-column form that reconciles bank and book balances to the correct cash balance.
2-2. Prepare the journal entry to bring the cash balance to its correct amount.
(a)
Check number 748 for $3,000 payable to a merchandise supplier was originally recorded on the books as $4,500.
(b)
A customer's check was returned on June 29. The bank charged Schexnayder’s account for $14,265, including a fee of $42.
(c)
The deposit from customers paying on account of June 24 was recorded on the books as $2,895, but it was actually a deposit of $2,700.
(d)
Outstanding checks totaled $9,885 as of June 30.
(e)
There were bank service charges for June of $210 not yet recorded on the books.
(f)
Schexnayder’s account had been charged on June 26 for a customer's NSF check for $1,296.
(g)
Schexnayder properly deposited $600 on June 3 that was not recorded by the bank.
(h)
Receipts of June 30 for $13,425 were recorded by the bank on July 2.
(i)
A bank memo stated that a customer's note for $4,500 and interest of $165 had been collected on June 27, and the bank charged a $36 collection fee.
Explanation / Answer
Bank RECEONCILATION unadjusted bank balance 54,780 Add:Deposit not recorded 600 Deposit in transit 13,425 14,025 68,805 less: Checks outstanding 9,885 Adjusted bank balance 58,920 Unadjusted cash balance 68,757 Add:book errror chq no 748 1,500 Customer note collected by bank 4629 6,129 74,886 less: dishonoered note 14,265 Bank error 195 NSF check 1,296 Bank service charge 210 15,966 ajjusted cash balance 58,920 journal Entry Cash 4629 interest expense 36 interest earned 165 note receivable 4,500 account receivable 1,296 cash 1,296 Accounts receivable 195 cash 195 bank service fee 210 cash 210 Accounts receivable 14,265 cash 14,265
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