please help me do journal entries for the following bank reconciliation: FRAISER
ID: 2702446 • Letter: P
Question
please help me do journal entries for the following bank reconciliation:
FRAISER COMPANYBank Reconciliation
July 31, 2012 Adjusted cash balance per bankNSF checkOutstanding checksCash balance per booksAdjusted cash balance per booksDeposits in transitCollection of note receivableError in recording checkBank service chargeCash balance per bank statement $ Add: Adjusted cash balance per bankCash balance per bank statementCash balance per booksBank service chargeNSF checkCollection of note receivableError in recording checkAdjusted cash balance per booksDeposits in transitOutstanding checks Less: Collection of note receivableCash balance per booksBank service chargeAdjusted cash balance per booksNSF checkError in recording checkCash balance per bank statementDeposits in transitOutstanding checksAdjusted cash balance per bank Error in recording checkBank service chargeCash balance per bank statementAdjusted cash balance per bankCash balance per booksOutstanding checksAdjusted cash balance per booksCollection of note receivableDeposits in transitNSF check $ Adjusted cash balance per bankCash balance per booksAdjusted cash balance per booksDeposits in transitOutstanding checksCollection of note receivableNSF checkError in recording checkBank service chargeCash balance per bank statement $ Add: Collection of note receivableBank service chargeOutstanding checksAdjusted cash balance per booksCash balance per bank statementNSF checkAdjusted cash balance per bankCash balance per booksError in recording checkDeposits in transit Less: Cash balance per bank statementCash balance per booksAdjusted cash balance per bankAdjusted cash balance per booksBank service chargeDeposits in transitOutstanding checksNSF checkCollection of note receivableError in recording check $ Adjusted cash balance per booksNSF checkDeposits in transitOutstanding checksCollection of note receivableBank service chargeError in recording checkCash balance per bank statementAdjusted cash balance per bankCash balance per books Error in recording checkBank service chargeCash balance per bank statementNSF checkAdjusted cash balance per bankCash balance per booksDeposits in transitAdjusted cash balance per booksOutstanding checksCollection of note receivable Cash balance per bank statementDeposits in transitCash balance per booksOutstanding checksError in recording checkNSF checkBank service chargeAdjusted cash balance per booksCollection of note receivableAdjusted cash balance per bank $ journal entries for the following bank reconciliation: Prepare the bank reconciliation as of July 31. Prepare the bank reconciliation as of July 31. Prepare the necessary adjusting entries at July 31.
Explanation / Answer
he following information is available to reconcile Clark Company%u2019s book balance of cash with its
bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company%u2019s Cash account has a $26,193 debit balance,
but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank
reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is
not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, 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 $1,250 but was
erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000
cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder
to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had
been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet
been recorded because no previous notification had been received.
g. Clark%u2019s July 31 daily cash receipts of $10,152 were placed in the bank%u2019s night depository on that
date, but do not appear on the July 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of July 31, 2005.
2. Prepare the journal entries necessary to bring the company%u2019s book balance of cash into conformity
with the reconciled cash balance as of July 31, 2005.
Analysis Component
3. Assume that the July 31, 2005, bank reconciliation for this company is prepared and some items
are treated incorrectly. For each of the following errors, explain the effect of the error on (i) the
adjusted bank statement cash balance and (ii) the adjusted cash account book balance.
a. The company%u2019s unadjusted cash account balance of $26,193 is listed on the reconciliation as
$26,139.
b. The bank%u2019s collection of the $9,000 note less the $45 collection fee is added to the bank statement
cash balance on the reconciliation
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