Question

Whispering Winds Spa shows a general ledger balance for the Cash account of $4,169.35 on June...

Whispering Winds Spa shows a general ledger balance for the Cash account of $4,169.35 on June 30 and the bank statement as of that date indicates a balance of $4,195.00. When the statement was compared with the cash records, the following facts were determined:
1. There were bank service charges for June of $23.00.
2. A bank memo stated that Bao Dai’s note for $906.00 and interest of $51.00 had been collected on June 29, and the bank had charged $4.50 for the collection. Any interest revenue has not been accrued.
3. Deposits in transit June 30 were $2,950.00.
4. Cheques outstanding on June 30 totalled $2,081.05.
5. On June 29, the bank had charged Whispering Winds Spa’s account for a customer’s NSF cheque amounting to $528.20.
6. A customer’s cheque received as a payment on account of $99.00 had been entered as $76.00 in the cash receipts journal by Whispering Winds Spa on June 15.
7. Cheque no. 742 in the amount of $505.00 had been entered in the books as $455.00, and cheque no. 747 in the amount of $30.70 had been entered as $551.00. Both cheques were issued as payments on account.
8. In May, the bank had charged a $33.50 Wella Spa cheque against the Whispering Winds Spa account. The June bank statement indicated that the bank had reversed this charge and corrected its error.

Prepare a bank reconciliation at June 30. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)

Whispering Winds Spa
Bank Reconciliation
June 30

Bond interest collected by bankDeposits in transitError in recording depositAdjusted cash balance, June 30 per bankBank service chargesError on cheque no. 745Error on cheque no. 747Outstanding chequesNote collectionNSF chequeBalance per bank, June 30Error on cheque no. 742

$

AddLess

:

Error on cheque no. 742Error in recording depositNote collectionBank service chargesBond interest collected by bankAdjusted cash balance, June 30 per bankDeposits in transitNSF chequeBalance per bank, June 30Error on cheque no. 745Outstanding chequesError on cheque no. 747

AddLess

:

Error on cheque no. 745Balance per bank, June 30Error on cheque no. 747NSF chequeAdjusted cash balance, June 30 per bankDeposits in transitError in recording depositNote collectionError on cheque no. 742Bank service chargesBond interest collected by bankOutstanding cheques

Bond interest collected by bankBalance per bank, June 30Error in recording depositError on cheque no. 745Deposits in transitBank service chargesOutstanding chequesAdjusted cash balance, June 30 per bankError on cheque no. 747Note collectionNSF chequeError on cheque no. 742

$

Balance per books, June 30Note collectionAdjusted balance, June 30 per booksError in recording depositBank service chargesNSF chequeBond interest collected by bankError on cheque no. 742Error on cheque no. 747Error on cheque no. 745Deposits in transitOutstanding cheques

$

AddLess

:

    Adjusted balance, June 30 per books    Outstanding cheques    Bond interest collected by bank    Balance per books, June 30    Bank service charges    Error on cheque no. 745    Deposits in transit    Note collection    Error in recording deposit    Error on cheque no. 747    NSF cheque    Error on cheque no. 742    

$

    Note collection    Deposits in transit    Balance per books, June 30    Error on cheque no. 742    Error on cheque no. 745    NSF cheque    Adjusted balance, June 30 per books    Bond interest collected by bank    Bank service charges    Outstanding cheques    Error in recording deposit    Error on cheque no. 747    

    Bank service charges    Bond interest collected by bank    Error on cheque no. 747    Error in recording deposit    Balance per books, June 30    Note collection    Error on cheque no. 742    NSF cheque    Error on cheque no. 745    Adjusted balance, June 30 per books    Deposits in transit    Outstanding cheques    

AddLess

:

    Error on cheque no. 745    Outstanding cheques    Error on cheque no. 747    Adjusted balance, June 30 per books    Balance per books, June 30    Error in recording deposit    Note collection    Error on cheque no. 742    Deposits in transit    NSF cheque    Bank service charges    Bond interest collected by bank    

    Deposits in transit    Adjusted balance, June 30 per books    Note collection    Balance per books, June 30    Bank service charges    Outstanding cheques    Error on cheque no. 742    Error in recording deposit    Bond interest collected by bank    Error on cheque no. 745    NSF cheque    Error on cheque no. 747    

    NSF cheque    Balance per books, June 30    Error on cheque no. 742    Error in recording deposit    Error on cheque no. 747    Note collection    Bank service charges    Bond interest collected by bank    Error on cheque no. 745    Outstanding cheques    Adjusted balance, June 30 per books    Deposits in transit    

NSF chequeOutstanding chequesBank service chargesDeposits in transitBalance per books, June 30Error on cheque no. 742Error on cheque no. 747Note collectionAdjusted balance, June 30 per booksError in recording depositBond interest collected by bankError on cheque no. 745

$

Homework Answers

Answer #1
Answer

Bank reconciliation:

Unadjusted balance as per Bank statement $4,195.00
Add; Deposit in transit $2,950.00
Less: Outstanding check $2,081.05
Adjusted balance, June 30 per books $5,063.95
Balance as per book, June 30 per books $4,169.35
Add:
Notes collection (906+51-4.5) $952.50
Error in cheque no. 747 (551-30.70) $520.30
Error in deposit (99-76) $ 23.00
$1,495.80
Less:
NSF Check $528.20
Bank service charge $ 23.00
Error in Cheque No. 742 (505-455) $ 50.00
$   601.20
Adjusted balance, June 30 per books $5,063.95
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
WileyPLUS Problem 7-6 Whispering Winds Spa shows a general ledger balance for the Cash account of...
WileyPLUS Problem 7-6 Whispering Winds Spa shows a general ledger balance for the Cash account of $4,169.35 on June 30 and the bank statement as of that date indicates a balance of $4,195.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $23.00. 2. A bank memo stated that Bao Dai’s note for $906.00 and interest of $51.00 had been collected on June 29, and the...
Ayayai Spa shows a general ledger balance for the Cash account of $4,181.35 on June 30...
Ayayai Spa shows a general ledger balance for the Cash account of $4,181.35 on June 30 and the bank statement as of that date indicates a balance of $4,135.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $29.00. 2. A bank memo stated that Bao Dai’s note for $918.00 and interest of $36.00 had been collected on June 29, and the bank had charged $4.50...
The cash account of Pronghorn Corp. shows a ledger balance of $3,974.85 on June 30, 2017....
The cash account of Pronghorn Corp. shows a ledger balance of $3,974.85 on June 30, 2017. The bank statement as at that date indicates a balance of $4,150. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $25. 2. A bank memo stated that Bao Dai’s note for $890 and interest of $32 had been collected on June 29, and the bank had made a charge...
GENERAL LEDGER—COOKIE CREATIONS Cash Date Explanation Ref Debit Credit Balance 2020 June 1 Balance 2,657 1...
GENERAL LEDGER—COOKIE CREATIONS Cash Date Explanation Ref Debit Credit Balance 2020 June 1 Balance 2,657 1 750 3,407 3 Check #600 625 2,782 3 Check #601 95 2,687 8 Check #602 56 2,631 9 1,050 3,681 13 Check #603 425 3,256 20 155 3,411 28 Check #604 297 3,114 28 110 3,224 PREMIER BANK Statement of Account—Cookie Creations June 30, 2020 Date Explanation Checks and Other Debits Deposits Balance May 31 Balance 3,256 June 1 Deposit 750 4,006 6 Check...
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...
The balance in Happ, Inc.’s general ledger Cash account was $13,200 at September 30, before reconciliation....
The balance in Happ, Inc.’s general ledger Cash account was $13,200 at September 30, before reconciliation. The September 30 balance shown in the bank statement was $11,830. Reconciling items included deposits in transit, $1,270; bank service charges, $105; NSF check written by a customer and returned with the bank statement, $520; outstanding checks, $450; and interest credited to the account during September but not recorded on the company’s books, $75. Required: Prepare a bank reconciliation as of September 30 for...
The following information regarding cash for Alpha Company is provided for the month ending March 31,...
The following information regarding cash for Alpha Company is provided for the month ending March 31, 2016: Item Amount Ending Cash per Bank Statement Ending Cash per books $22,484 $14,794 Note collected by bank included interest of $106 $5,106 Bank Service Charges $35 Deposits in Transit $1,776 Outstanding Cheques $4,717 Customer Cheque returned NSF $322 Do the bank reconciliation in order to find the adjusted cash balance.
The cash account of Pearl Co. showed a ledger balance of $16,442.97 on June 30, 2020....
The cash account of Pearl Co. showed a ledger balance of $16,442.97 on June 30, 2020. The bank statement as of that date showed a balance of $17,430. Upon comparing the statement with the cash records, the following facts were determined. 1. There were bank service charges for June of $105. 2. A bank memo stated that Bao Dai’s note for $5,040 and interest of $151.20 had been collected on June 29, and the bank had made a charge of...
Problem 7-03A (Part Level Submission) On July 31, 2022, Sandhill Co. had a cash balance per...
Problem 7-03A (Part Level Submission) On July 31, 2022, Sandhill Co. had a cash balance per books of $6,285.00. The statement from Dakota State Bank on that date showed a balance of $7,835.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $17.00. 2. The bank collected $1,665.00 from a customer for Sandhill Co. through electronic funds transfer. 3. The July 31 receipts of $1,346.30 were not...
Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Cash balance per...
Jamison Company gathered the following reconciling information in preparing its June bank reconciliation: Cash balance per bank, June 30 $11,883 Note receivable collected by bank 7,216 Outstanding checks 5,690 Deposits in transit 4,345 Bank service charge 77 NSF check 1,902 Using the above information, determine the cash balance per books (before adjustments) for Jamison Company. On October 1, Black Company receives a 10% interest-bearing note from Reese Company to settle a $16,200 account receivable. The note is due in six...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT