National Surf Board Co. (NSB) gathered the following information for its August 31 bank reconciliation: Cash...

National Surf Board Co. (NSB) gathered the following information for its August 31 bank reconciliation:

Cash balance per books, August 31 $3,872
Cash balance per bank, August 31 $ (332) (account is overdrawn; a negative balance)

August 31st cash receipts of $8,000 were locked in NSB’s Treasurer’s office with a plan to deposit them at the bank the next day.

Outstanding cheques issued by NSB at August 31st totalled $4,023

A check originally issued by a customer for $257 was returned by NSB’s bank.

The bank statement showed the bank assessed interest charges of $15 on August 31 which have not been recorded by NSB.

The bank statement showed special charges of $35 which had been properly recorded by NSB.

NSB’s Check #101 to pay for supplies was incorrectly processed by NSB’s bank as $205; it was correctly entered as $250 in NSB’s books.

1) Prepare the bank reconciliation for August 31. (5 Marks)

2) Prepare any necessary journal entries that NSB has to make to update its accounting records. (2 Marks)

Expert Solution

Requirement:1

National Surf Board Co.
Bank Reconciliation Statement
As on August 31
Cash balance according to bank statement		$ (332.00)
Add:
Depoosit in transit	$ 8,000.00	$ 8,000.00
Deduct:
Outstanding Checks	$ (4,023.00)
Bank Errors overstated the bank balance [250-205]	$ (45.00)	$ (4,068.00)
Adjusted cash balance per bank		$ 3,600.00


Cash balance according to company`s records		$ 3,872.00
Add:

Deduct:
Interest Charges	$ (15.00)
Check Returned by Bank	$ (257.00)	$ (272.00)

Adjusted cash balance per books		$ 3,600.00

Requirement:2

Date	Account Tiltes and Explanation	Debit	Credit
August. 31	Account Receivables	$ 257.00
	Cash		$ 257.00
	(To record customer check returned by the bank )

August. 31	Interest Charges	$ 15.00
	Cash		$ 15.00
	(To record interest charges charged by bank)

No need to record any other transactions

ekkarill92 answered 3 years ago

Derek Company gathered the following reconciling information in preparing its September bank reconciliation: Cash balance per...

Derek Company gathered the following reconciling information in preparing its September bank reconciliation: Cash balance per books, 9/30 $2,190 Deposits in transit 572 Notes receivable and interstate's collected by bank. 879 Bank charge for check printing 29 Outstanding checks 1,322 NSF 178 Find the adjusted cash balance per books on September 30. Select the correct answer. $2,862 $2,112 $1,440 $2,290

Using the following information to prepare a bank reconciliation for XYZ Co. for May 31: (a)...

Using the following information to prepare a bank reconciliation for XYZ Co. for May 31: (a) The bank statement balance is $3,936. (b) The cash account balance is $4,194. (c) Outstanding checks amounted to $465. (d) Deposits in transit are $655. (e) The bank service charge is $50. (f) A check for $97 for supplies was recorded as $79 in the ledger.

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted...

Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30. Cash balance per books, September 30 $ 3,181 Deposits in transit 421 Notes receivable and interest collected by bank 888 Bank charge for check printing 29 Outstanding checks 1,347 NSF check 144 a.$2,970 b.$3,896 c.$2,255 d.$3,114 Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: Cash balance...

Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a...

Bank Reconciliation Statement. The cash account for Corey’s Construction Company at August 31, 2020, indicated a book balance of $19,885. The bank statement received by the company indicated a balance of $39,473.63 as at August 31, 2020. A comparison of the bank statement and the accompanying cancelled cheques and memos with the records revealed the following: A deposit of $6,794.62 was received by the bank on August 31 after the bank statement was prepared. Cheques #251 for $1,200 and #260...

Bank Reconciliation An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank...

Bank Reconciliation An accounting clerk for Chesner Co. prepared the following bank reconciliation: Chesner Co. Bank Reconciliation July 31, 20Y4 Cash balance according to company's records $8,260 Adjustments: Outstanding checks $3,960 Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540 Note for $13,000 collected by bank, including interest 13,520 Deposit in transit on July 31 (8,410) Bank service charges (30) Total adjustments 9,580 Cash balance according to bank statement $17,840 a. From the data...

The Scooter Warehouse provided the following information at December 31, 2013: Bank Reconciliation General ledger cash...

The Scooter Warehouse provided the following information at December 31, 2013: Bank Reconciliation General ledger cash balance, 12/31/13 $ 17,566 Bank statement balance, 12/31/13 $ 16,306 Bank service charge (25 ) Deposits in transit 2,450 Returned customer checks marked NSF (375 ) Outstanding checks (1,356 ) Error in recording of office supplies 234 Adjusted cash balance, 12/31/13 $ 17,400 Adjusted cash balance, 12/31/13 $ 17,400 Investment in securities The company invested $26,000 in a portfolio of investment in securities on...

Zhang Company’s bank statement from Nguyen National Bank at August 31, 2015, shows the information below....

Zhang Company’s bank statement from Nguyen National Bank at August 31, 2015, shows the information below. Balance, August 1 $11,284 August deposits 47,521 Checks cleared in August 46,475 Balance, August 31 16,856 Bank credit memoranda: Collection of note receivable plus $105 interest $5,105 Interest earned 41 Bank debit memorandum: Safety deposit box rent 20 A summary of the Cash account in the ledger for August shows: balance, August 1, $10,959; receipts $50,050;...

Bank Reconciliation The following data were gathered to use in reconciling the bank account of Azalea...

Bank Reconciliation The following data were gathered to use in reconciling the bank account of Azalea Company: Balance per bank $ 17,300 Balance per company records 8,170 Bank service charges 20 Deposit in transit 3,050 Note collected by bank with $150 interest 4,750 Outstanding checks 7,450 a. What is the adjusted balance on the bank reconciliation? $ b. Journalize any necessary entries for Azalea Company based on the bank reconciliation. If an amount box does not require an entry, leave...

Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank...

Bank Reconciliation The following bank reconciliation was prepared as of June 30, 20Y7: Poway Co. Bank Reconciliation For the Month Ended June 30, 20Y7 Cash balance according to bank statement $16,185 Adjustments: Outstanding Check No.1067 $575 Outstanding Check No.1106 470 Outstanding Check No.1110 1,050 Outstanding Check No.1113 910 Deposit of June 30 not recorded by bank (6,600) Total adjustments (3,595) Adjusted balance $12,590 Cash balance according to company’s records $8,985 Adjustments: Proceeds of note collected by bank: Face value $6,000...

Prepare a bank reconciliation for Grace, Inc., as of January 31, from the following information: (a.)...

Prepare a bank reconciliation for Grace, Inc., as of January 31, from the following information: (a.) The January 31 cash balance in the general ledger is $5,088. (b.) The January 31 balance shown on the bank statement is $4,544. (c.) Checks issued but not returned with the bank statement were No. 435 for $452 and No. 448 for $182. (d.) A deposit made on January 31 for $1,280 was included in the general ledger balance but not in the bank...

Question