Chapter 5 - Bank Reconciliation Lecture Problems PDF

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Summary

practice lecture problem of bank reconciliation lecture problem for Professor Bill Foley...

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Bank Reconciliation Problem #1 Information from the records and bank statement and of Matrix, Inc. as of July 31, 2018 is set forth below Cash balance per bank, July 31, 2018 Cash balance per general ledger, July 31, 2018 Outstanding checks at July 31, 2018 Check mailed to the bank for deposit that had not reached the bank by July 31, 2018 NSF check (from a customer for a payment on account) returned by bank July interest earned per bank statement Check no. 781 for supplies expense cleared the bank for $240, but was erroneously recorded in the books at $268 Deposit by Acme Company erroneously credited by the bank to our account

$9,61 0 7,430 2,417 500 281 30

486

Required: Part A - Prepare the bank reconciliation for Matrix, Inc. Part B - Prepare any journal entries that should be made as a result of the bank reconciliation.

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

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Part A - Prepare the bank reconciliation for Matrix, Inc. Matrix, Inc. Bank Reconciliation July 31, 2018 Updates to Bank Statement July 31 cash balance Additions: Deposit in transit Deductions: Bank error Outstanding checks Up-to-date cash balance

(486) (2,417) $7,207

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

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$9,610 500

Updates to Company’s Books July 31 cash balance $7,430 Additions: Interest earned 30 Recording error check 781 28 Deductions: NSF check (281) Up-to-date cash balance $7,207

Part B Prepare any journal entries that should be made as a result of the bank reconciliation. Date July 31

Accounts

Debit

Cash

Credit 30

Interest Revenue July 31

30

Cash

28 Supplies Expense

July 31

28

Accounts Receivable Cash

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

281 281

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Bank Reconciliation Problem #2 – Prepare the bank reconciliation for Donna’s Day Care using the following information: Cash balance per bank, June 30, 2018 Cash balance per general ledger, June 30, 2018 Outstanding checks, June 30, 2018 Deposit in transit, June30, 2018 NSF check (from a customer for a payment on account) returned by bank June interest earned per bank statement Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was erroneously recorded in the books at $800 Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank statement as $6,200

Part A Prepare the bank reconciliation for Donna’s Day Care.

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

Page 4

$5,58 6 5,055 1,816 750 450 15

Part B Prepare any journal entries that should be made as a result of the bank reconciliation. Date

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

Accounts

Debit

Page 5

Credit

SOLUTION BANK RECONCILIATION Prepare the bank reconciliation for Donna’s Day Care using the following information: Cash balance per bank, June 30, 2018 Cash balance per general ledger, June 30, 2018 Outstanding checks, June 30, 2018 Deposit in transit, June30, 2018 NSF check (from a customer for a payment on account) returned by bank June interest earned per bank statement Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was erroneously recorded in the books at $800 Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank statement as $6,200

$5,58 6 5,055 1,816 750 450 15

Part A Prepare the bank reconciliation for Donna’s Day Care. Donna’s Day Care Bank Reconciliation June 30, 2018 Updates to Bank Statement June 30 cash balance Additions: Deposit in transit Deductions: Bank error

$5,586 750 (200)

Outstanding checks Up-to-date cash balance

(1,816) $4,320

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

Page 6

Updates to Company’s Books June 30 cash balance $5,055 Additions: Interest earned 15 Deductions: Recording error check (300) 800 NSF check (450) Up-to-date cash balance $4,320

Part B - Prepare any journal entries that should be made as a result of the bank reconciliation. Date June 30

Accounts

Debit

Cash

Credit 15

Interest Revenue June 30

June 30

15

Accounts Payable Cash

300

Accounts Receivable Cash

450

Acc207 – Financial Accounting Chapter 5 – Bank Reconciliation Problems Last Revised: October 25, 2017

300

450

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