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; disbursements $47,794; and balance, August 31, $13,215. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $3,200 and outstanding checks of $2,925. The deposit in transit was the first deposit recorded by the bank in August. In addition, you determine that there were two errors involving company checks drawn in August: (1) A check for $340 to a creditor on account that cleared the bank in August was journalized and posted for $430. (2) A salary check to an employee for $275 was recorded by the bank for $277.

Instructions

a) Prepare a bank reconciliation at August 31.

b) Journalize the adjusting entries to be made by Zhang Company at August 31. Assume that interest on the note has not been accrued by the company.

Expert Solution

	Zhang Company
	Bank Reconciliation
	August 31
	Cash balance according to bank statement		$16,856
	Add: Deposits in transit	$5,729
	Error in recording check	$2	$5,731
			$22,587
	Deduct: Outstanding checks:		$4,156
	Adjusted Balance		$18,431


	Cash balance according to Roper Electronics		$13,215
	Add: Note and interest collected by bank	$5,105
	Interest Earned	$41
	Error in recording check	$90	$5,236
			$18,451
	Deduct: Bank Charges		$20
	Correct cash balance, September 30		$18,431


	Account Titles and Explanation	Debit	Credit
1	Cash	$5,105
	Notes Receivable		$5,000
	Interest Revenue		$105

2	Cash	$41
	Interest Revenue		$41

3	Cash	$90
	Accounts Payable		$90

4	Miscellaneous Expense	$20
	Cash		$20

ekkarill92 answered 2 years ago

Shamrock, Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information....

Shamrock, Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 $18,550 Bank debit memorandum: August deposits 71,150 Safety deposit box fee $ 60 Checks cleared in August 68,643 Service charge 85 Bank credit memorandum: Balance, August 31 20,992 Interest earned 80 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,850; receipts $74,150; disbursements $73,535; and balance, August 31, $19,465. Analysis reveals that...

Werth Inc.’s bank statement from Hometown Bank at August 31, 2018, gives the following information. Balance,...

Werth Inc.’s bank statement from Hometown Bank at August 31, 2018, gives the following information. Balance, August 1 $18,400 Bank debit memorandum: August deposits 81,000 Safety deposit box fee $ 25 Checks cleared in August 78,678 Service charge 50 Bank credit memorandum: Balance, August 31 20,692 Interest earned 45 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,700; receipts $84,000; disbursements $83,570; and balance, August 31, $19,130. Analysis reveals that the...

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...

Teal Mountain Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following...

Teal Mountain Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. Balance, August 1 $18,660 Bank debit memorandum: August deposits $71,260 Safety deposit box fee $125 Checks cleared in August $68,578 Service charge $150 Bank credit memorandum: Balance, August 31 $21,212 Interest earned $145 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,960; receipts $74,260; disbursements $73,470; and balance, August 31, $19,750. Analysis reveals that...

Buffalo Company has just received the August 31, 2017, bank statement, which is summarized below. County...

Buffalo Company has just received the August 31, 2017, bank statement, which is summarized below. County National Bank Disbursements Receipts Balance Balance, August 1 $ 12,686 Deposits during August $ 43,599 56,285 Note collected for depositor, including $ 54 interest 1,408 57,693 Checks cleared during August $ 46,713 10,980 Bank service charges 27 10,953 Balance, August 31 10,953 The general ledger Cash account contained the following entries for the month of August. Cash Balance, August 1 13,608 Disbursements in August...

Exercise 7-14 Metlock, Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the...

Exercise 7-14 Metlock, Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. Balance, August 1 $18,740 Bank debit memorandum: August deposits 71,340 Safety deposit box fee $ 45 Checks cleared in August 68,658 Service charge 70 Bank credit memorandum: Balance, August 31 21,372 Interest earned 65 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,040; receipts $74,340; disbursements $73,550; and balance, August 31, $19,830. Analysis...

The following information applies to the questions displayed below.] On October 31, 2018, the bank statement...

The following information applies to the questions displayed below.] On October 31, 2018, the bank statement for the checking account of Blockwood Video shows a balance of $13,079, while the company’s records show a balance of $12,356. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks are $1,255. b. The October 31 cash receipts of $810 are not deposited in the bank until November 2. c. One check written in payment of utilities...

Consider the following information from a company’s unadjusted trial balance at December 31, 2015. All accounts...

Consider the following information from a company’s unadjusted trial balance at December 31, 2015. All accounts have normal balances. Accounts receivable $ 5,000 Accounts payable 675 Cash 1,750 Service revenue 6,150 Common stock 4,500 Equipment 5,400 Insurance expense 425 Land 4,300 Notes payable, due 2018 4,500 Notes receivable, matures 2016 1,250 Prepaid insurance 425 Rent expense 1,425 Retained earning, January 1, 2015 7,900 Salaries and wages expense 3,750 What is the total of the debit side of the unadjusted trial...

Below is information from Darren Company’s 2012 financial statements. As of Dec. 31, 2012 Dec. 31,...

Below is information from Darren Company’s 2012 financial statements. As of Dec. 31, 2012 Dec. 31, 2011 Cash and short-term investments $ 958,245 $ 745,800 Accounts Receivable (net) 125,850 135,400 Inventories 195,650 175,840 Prepaid Expenses and other current assets 45,300 30,860 Total Current Assets $1,325,045 $1,087,900 Plant, Property and Equipment, net 1,478,320 1,358,700 Intangible Assets 125,600 120,400 Total Assets $2,928,965 $2,567,000 Short-term borrowings $ 25,190 $ 38,108 Current portion of long-term debt 45,000 40,000 Accounts payable 285,400 325,900 Accrued liabilities...

On August 1, 2019, the accountant for Western Imports downloaded the company’s July 31, 2019, bank...

On August 1, 2019, the accountant for Western Imports downloaded the company’s July 31, 2019, bank statement from the bank’s website. The balance shown on the bank statement was $28,760. The July 31, 2019, balance in the Cash account in the general ledger was $14,042. Jenny Irvine, the accountant for Western Imports, noted the following differences between the bank’s records and the company’s Cash account in the general ledger: An electronic funds transfer for $14,600 from Foncier Ricard, a customer...

Question