At December 31 the cash balance per books of Heinisch Company was $12,485.20, an
ID: 2602551 • Letter: A
Question
At December 31 the cash balance per books of Heinisch Company was $12,485.20, and the cash balance per the bank statement was $20,154.30. The bank did not make any errors, but two errors were made by Heinisch Company.
The December bank statement for Heinisch Company showed the following checks and deposits.
Bank Statement
Checks Deposits
Date Number Amount Date Amount
12-7 3472 1,426.80 12-4 1,211.60
12-4 3474 1,640.70 12-16 2,672.70
12-8 3475 1,300.00 12-21 2,954.00
12-31 3479 450.80 12-30 1,025.00
The cash records per books for December showed the following cash payments and receipts.
Cash Payments Cash deposited
Date Check Number Amount Date Amount
12-1 3471 720.10 12-3 $1,211.60
12-1 3472 1,426.80 12-15 2,672.70
12-1 3473 1,050.00 12-20 2,945.00
12-1 3474 1,640.70 12-30 1,025.00
12-2 3475 1,300.00 12-31 1,190.40
12-4 3476 621.30
12-17 3477 807.40
12-23 3478 798.00
12-24 3479 540.80
12-30 3480 1,889.50
In addition, the bank statement contains the following items:
1. The collection of a $3,500 note and $145 of interest less a collection fee of $20 from a customer of Heinisch Company.
2. A NSF check of $725.80 written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank.
3. Bank service charge of $25.
Required:
1. Prepare bank reconciliation at December 31.
2. Prepare the required journal entries based on the reconciliation. Omit explanations.
Explanation / Answer
Hint:- simply adjust in your books of account for whatever is there or not there in bank account.
if there is deposit in bank account but deposit is missing in your books: add it
similarily if bank fee has been charged but you havent shown it in ur account: less it from your balance.
if you have shown clearance of check in ur account , but same hasen't cleared from bank account: add it back in ur account
ITS LIKE 1 to 1 tally;- whatever has been done in bank account match it with ur books of accounts
particular amount Balance as per books of accounts 12485.20 Add:- #3471 outstanding check 720.10 Add:- #3473 outstanding check 1050.00 Add:- #3476 outstanding check 621.30 Add:- #3477 outstanding check 807.40 Add:- #3478 outstanding check 798.00 Add:- #3480 outstanding check 1889.50 Add:- Interest on bank account 145.00 Add:- Note collection 3500.00 Less:- Bank collection fee ( 20.00) Add:-#3479 check wrongly recorded by(540.8-450.8) 90.00 Less:- Customer NSF check not been redeposited in the bank. (725.80) Less:- Bank service charge (25.00) Add:- error in record of deposit on 12-20 , excess record to be made (2954-2945) 9.00 Less:- deposit made but not reflected in bank yet (1190.4) Balance as per Bank account 20,154.30Related Questions
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