1.(Learning Objective 3: Design and use a bank reconciliation) The Cash account
ID: 2742496 • Letter: 1
Question
1.(Learning Objective 3: Design and use a bank reconciliation)
The Cash account of Vincente Corp. reported a balance of $3,640 at August 31. Included were outstanding checks totaling $800 and an August 31 deposit of $300 that did not appear on the bank statement. The bank statement, which came from Tri State Bank, listed an August 31 balance of $4,775. Included in the bank balance was an August 30 collection of $685 on account from a customer who pays the bank directly. The bank statement also shows a $15 service charge, $20 of interest revenue that Vincente earned on its bank balance, and an NSF check for $55.
1. Prepare a bank reconciliation to determine how much cash Vincente actually has at August 31.
2. After preparing Vincente Corp.'s bank reconciliation, make the company's journal entries for transactions that arise from the bank reconciliation. Date each transaction August 31, 2014, and include an explanation with each entry.
Explanation / Answer
Answer:1
Answer:2
Vincente Corp. Bank Reconciliation 31-Aug-14 Bank Books Balance, August 31 4775 Balance, August 31 3640 Add: Add: Deposit in transit 300 Bank collection 685 Subtotal 5075 Interest revenue 20 Less: Subtotal 4345 Outstanding 800 Less: Adjusted bank balance 4275 Service charge 15 NSF 55 Adjusted book balance 4275Related Questions
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