Question

In: Accounting

Spielberg Company's general ledger shows a checking account balance of $22,910 on July 31, 2021

Exercise 4-9A Calculate the balance of cash using a bank reconciliation (LO4-5) 


Spielberg Company's general ledger shows a checking account balance of $22,910 on July 31, 2021. The July cash receipts of $1,825, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $49. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for one check totaling $1,400. The bank statement shows a balance of $22.436 on July 31.


Required:

 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on July 31, 2021. (Amounts to be deducted should be indicated with a minus sign.) 

image.png

 2. Record the necessary entry(ies) to adjust the balance for cash. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 

image.png



Solutions

Expert Solution

1
Bank Reconciliation
July 31,2021
Bank's Cash balance Company's Cash balance
Per bank statement 22436 Per general ledger 22910
Deposits outstanding 1825 Service Fees -49
Checks outstanding -1400
Bank balance per reconciliation 22861 Company balance per reconciliation 22861
2
1
General Journal Debit Credit
No journal entry required
2
General Journal Debit Credit
Service fees expense 49
        Cash 49

Related Solutions

Spielberg Company's general ledger shows a checking account balance of $22,880 on July 31, 2021. The...
Spielberg Company's general ledger shows a checking account balance of $22,880 on July 31, 2021. The July cash receipts of $1,795, included in the general ledger balance, are placed in the night depository at the bank on July 31 and processed by the bank on August 1. The bank statement dated July 31 shows bank service fees of $46. The bank processes all checks written by the company by July 31 and lists them on the bank statement, except for...
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439
On October 31, 2021, Damon Company's general ledger shows a checking account balance of $8,439. The company's cash receipts for the month total $74,600, of which $71,365 has been deposited in the bank. In addition, the company has written checks for $72,509, of which $71,234 has been processed by the bank. The bank statement reveals an ending balance of $12,749 and includes the following items not yet recorded by Damon: bank service fees of $290, note receivable collected by the bank...
On October 31, 2021. Damon Company's general ledger shows a checking account balance of $8.457 ...
On October 31, 2021. Damon Company's general ledger shows a checking account balance of $8.457. The company's cash receipts for the month total $74,720, of which $71,395 has been deposited in the bank. In addition, the company has written checks for $72,527, of which $71,342 has been processed by the bank. The bank statement reveals an ending balance of $13,187 and includes the following items not yet recorded by Damon: bank service fees of $350, note receivable collected by the bank...
On November 30th, FRI Company’s general ledger shows a checking account balance of $12,000.  The company’s cash...
On November 30th, FRI Company’s general ledger shows a checking account balance of $12,000.  The company’s cash receipts for the month which haven’t cleared the bank yet are $5,500 and checks written by the company this month which have not cleared the bank total $9,000.   While comparing the bank statement with the general ledger FRI determined the bank overstated a deposit the company made on November 28th for $100.  The bank statement also reported service fees of $50, interest FRI earned on...
A company's general ledger shows a cash balance of $4,590. Comparing the company's cash records with...
A company's general ledger shows a cash balance of $4,590. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $2,850, bank service fees of $120, and interest earned of $27. Calculate the correct balance of cash..
The general ledger of Jay Consulting shows the following balances at July 31 Cash $4,440 Accounts...
The general ledger of Jay Consulting shows the following balances at July 31 Cash $4,440 Accounts Receivable 5,780 Prepaid Rent 1,200 Accounts Payable 2,850 Salaries Payable 475 Jay Blue, Capital 7,486 Jay Blue, Drawing 2,000 Consulting Fees 6,920 Rent Expense 600 Salary Expense 2,600 Supplies Expense 755 Utilities Expense 196 Miscellaneous Expense 160 The general ledger of Jay Consulting shows the following balances at August 31 Cash $7,527 Accounts Receivable 4,287 Prepaid Rent 600 Accounts Payable 1,495 Salaries Payable 400...
Riverbed Spa shows a general ledger balance for the Cash account of $5,227.95 on June 30...
Riverbed Spa shows a general ledger balance for the Cash account of $5,227.95 on June 30 and the bank statement as of that date indicates a balance of $4,450.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $34.00. 2. A bank memo stated that Bao Dai’s note for $900 and interest of $46.00 had been collected on June 29, and the bank had charged $6.30...
Novak Spa shows a general ledger balance for the Cash account of $3,974.35 on June 30...
Novak Spa shows a general ledger balance for the Cash account of $3,974.35 on June 30 and the bank statement as of that date indicates a balance of $4,145.00. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $33.00. 2. A bank memo stated that Bao Dai’s note for $897.00 and interest of $42.00 had been collected on June 29, and the bank had charged $7.50...
On May 31st, Company O's General ledger shows a cash balance of $5123. The May 31...
On May 31st, Company O's General ledger shows a cash balance of $5123. The May 31 bank statement shows a balance of $4905. Other information is available as follows: 1. A May 31 deposit of $300 does not appear on the bank statement; but a $3 service charge does. 2. A customer's $40 insufficient funds check has been returned with the bank statement. 3. Outstanding checks of $10, 15 and $100 are identified on May What is the correct cash...
At December 31, 2021, the general ledger and subsidiary ledger for Albert's, a small auto parts...
At December 31, 2021, the general ledger and subsidiary ledger for Albert's, a small auto parts store, showed the following: General Ledger Accounts Receivable Subsidiary Ledger Accounts receivable $73,800 Best Auto Repair $3,900 Allowance for doubtful accounts 3,700 Brown’s Repair 23,600 Custom Repair 0 Jen’s Auto Body 32,200 Luxury Autos 14,100 Total $73,800 Jan. 3 Brown’s Repair paid $19,400 on its account. 4 Custom Repair paid $1,400 on its account that had previously been written off. 8 Jen’s Auto Body...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT