Question

Seattle Coffee Limited's bank statement for the month of November 2018 showed a balance per bank...

Seattle Coffee Limited's bank statement for the month of November 2018 showed a balance per bank of $7,000. The company's general ledger Cash account showed a balance of $5,659 at November 30. Other information is as follows:

1.    Cash receipts for November 30 recorded on the company's books were $5,200, but this amount does not appear on the bank statement.

2.    The bank statement shows a debit memorandum for $40 for cheque printing charges.

3.    Cheque #119 payable in the amount of $248 to Holt Corporation was recorded in the general journal and cleared the bank for $248. A review of the accounts payable records shows a $36 credit balance in Holt’s account and that the total payment should have been for $284.

4.    The total amount of cheques outstanding at November 30 was $5,800.

5.    Cheque #138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque #138 as a debit to Accounts Payable and a credit to Cash for $490.

6.    The bank returned an NSF cheque from a customer for $560.

7.    The bank statement included a deposit for $1,260, which represents the electronic collection of customer accounts which have not yet been recorded on the company’s books.

Instructions

(a)   Prepare a bank reconciliation for Seattle Coffee Limited at November 30, 2018.

(b) Prepare any journal entries necessary as a result of the bank reconciliation.

Homework Answers

Answer #1

a)

Seattle Coffee Limited
Bank Reconciliation
November 30, 2014
Balance as per bank $    7,000.00
Add: Deposit in transit $    5,200.00
Deduct: Outstanding checks $ (5,800.00)
Adjusted bank balance $    6,400.00
Balance as per books $    5,659.00
Less: Error in entry ($490-$409) $          81.00
Less: NSF Check $      (560.00)
Less: Bank charges $        (40.00)
Add: Electronic collection $    1,260.00
Asjusted book balance $    6,400.00

b)

Accounts receivable $ 560
Bank charges $    40
Cash $ 741
Accounts receivable $ 1,260
Accounts payable $        81
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Tarragon Trading Company's bank statement for the month of November showed a balance per bank...
The Tarragon Trading Company's bank statement for the month of November showed a balance per bank of $5,000. The company's Cash account in the general ledger had a balance of $3,440 at 30 November. Other information is as follows: (1)    The bank statement shows a debit memorandum for $50 for cheque printing charges. (2)    The total amount of cheques still outstanding at 30 November amounted to $2,800. (3)    Cash receipts for 30 November recorded on the company's books were $3,100...
On November 30 of the current year, the bank statement, showed a balance of $3,338.20 in...
On November 30 of the current year, the bank statement, showed a balance of $3,338.20 in the Halekulani Hotel bank account. The general ledger showed a debit balance of $4,195.20 at November 30. The following information was also determined: a) A customer’s cheque for $970 marked NSF was returned with the bank statement and was deducted from the bank account. The bank also deducted $25.00 to process the NSF cheque b) The November 30 cash receipts of $1,984.05 were placed...
On November 30, 2017, the cash account shows a balance of $38,000 before reconciliation. The bank...
On November 30, 2017, the cash account shows a balance of $38,000 before reconciliation. The bank statement for November does not include a deposit of $2,300 made on the last day on the month. The bank statement shows a collection by the bank of $940 and a customer check for $220 was returned because it is NSF. A customer’s check for $450 was recorded on the books as $540, and a check written for $79 for payment of an account...
Cowboy Company’s bank statement for June 30 showed a cash balance of $8,652. The company’s general...
Cowboy Company’s bank statement for June 30 showed a cash balance of $8,652. The company’s general ledger Cash account showed a $6,933 debit balance. The following information was also available as of June 30: A customer’s note for $900 was collected by the bank. A deposit placed in the bank’s night depository on June 30 totaled $3,456. This deposit did not appear on the bank statement. Outstanding checks as of June 30 totaled $4,560. Included with the bank statement was...
The following data has been gathered for Ludlow Inc. for the month ended November 30, 2018:...
The following data has been gathered for Ludlow Inc. for the month ended November 30, 2018: ∙     The bank statement reveals a balance of $3,500 ∙     The November 30, 2018, book balance was $1,300 ∙     There was an EFT deposit of $1,000 on the bank statement for a rental property. ∙     The bookkeeper had erroneously recorded cheque #101 as $435 cheque instead of $453. The cheque was to settle accounts payable. ∙     The bank statement revealed $120 in service charges....
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,462. The company's...
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,462. The company's Cash account in its general ledger showed a $1,115 debit balance. The following information was also available as of September 30. • The bank deducted $165 for an NSF check from a customer deposited on September 15. • The September 30 cash receipts, $1,330, were placed in the bank's night depository after banking hours on that date and this amount did not appear on...
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,476. The company's...
McDermott Company's bank statement for September 30 showed an ending cash balance of $1,476. The company's Cash account in its general ledger showed a $1,130 debit balance. The following information was also available as of September 30. The bank deducted $170 for an NSF check from a customer deposited on September 15. The September 30 cash receipts, $1,340, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September...
Brown Corporation’s bank statement for September 30 showed a balance of $2,625. The company's Cash account...
Brown Corporation’s bank statement for September 30 showed a balance of $2,625. The company's Cash account in its general ledger showed a $1,995 debit balance. The following information was also available as of September 30: A customer's note for $1,175 was collected by the bank; outstanding checks amounted to $1,345; a $15 checks printing fee was charged on September 30 bank statement; a $325 NSF check was returned to Brown Corporation; the September 30 cash receipts, $1,550, were placed in...
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of...
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of $26,660. The bank statement on that date showed a balance of $17,760. A comparison of the bank statement with the Cash account revealed the following. 1. The August 31 deposit of $17,050 was not included on the August bank statement. 2. The bank statement shows that Sheridan received EFT deposits from customers on account totalling $2,420 in August. Sheridan has not recorded any of...
PROBLEM II Brown Corporation’s bank statement for September 30 showed a balance of $2,625. The company's...
PROBLEM II Brown Corporation’s bank statement for September 30 showed a balance of $2,625. The company's Cash account in its general ledger showed a $1,995 debit balance. The following information was also available as of September 30: A customer's note for $1,175 was collected by the bank; outstanding checks amounted to $1,345; a $15 checks printing fee was charged on September 30 bank statement; a $325 NSF check was returned to Brown Corporation; the September 30 cash receipts, $1,550, were...