In: Accounting
i want the asnwere as soon as possible please
Pelzer Company reconciled its bank and book statement balances
of Cash on August 31 and showed two cheques outstanding at that
time, #5888 for $6,080 and #5893 for $1,453.00. The following
information was available for the September 30, 2017,
reconciliation:
From the September 30, 2017, bank statement
BALANCE OF PREVIOUS STATEMENT ON AUG. 31/17 | 10,440.00 |
6 DEPOSITS AND OTHER CREDITS TOTALLING | 19,446.00 |
9 CHEQUES AND OTHER DEBITS TOTALLING | 24,130.00 |
CURRENT BALANCE AS OF SEPT. 30/17 | 5,756.00 |
Chequing Account Transactions | |||||
Date | Amount | Transaction Description |
Date | Amount | Transaction Description |
Sept. 05 | 5,420.00 | + Deposit | Sept. 25 | 3,316.00 | + Deposit |
12 | 2,315.00 | + Deposit | 30 | 39.00 | + Interest |
17 | 200.45 | − NSF cheque | 30 | 3,488.00 | + Credit memo |
21 | 5,192.00 | + Deposit |
Date | Cheque No. | Amount | Date | Cheque No. | Amount |
Sept. 03 | 5904 | 9,340.55 | Sept. 22 | 5888 | 6,080.00 |
07 | 5901 | 1,446.00 | 24 | 5909 | 1,864.00 |
08 | 5905 | 295.00 | 28 | 5907 | 2,896.00 |
10 | 5903 | 1,150.00 | 29 | 5902 | 858.00 |
From Pelzer Company’s accounting records:
Cash | Acct. No. 101 | ||||
Date | Explanation | PR | Debit | Credit | Balance |
2017 | |||||
Aug. 31 | Balance | 2,583.00 | |||
Sept. 30 | CR12 | 17,406.00 | 19,989.00 | ||
30 | CD23 | 13,819.55 | 6,169.45 | ||
Deposits Made | |
Sept. 5 | $5,420.00 |
12 | 2,315.00 |
21 | 5,192.00 |
25 | 3,316.00 |
30 | 1,163.00 |
Total Sept. Cash Receipts | $17,406.00 |
Cheques Written | |
No. 5901 | $ 1,446.00 |
5902 | 858.00 |
5903 | 1,150.00 |
5904 | 3,940.55 |
5905 | 295.00 |
5906 | 624.00 |
5907 | 2,896.00 |
5908 | 746.00 |
5909 | 1,864.00 |
Total Sept. Cash Disbursements | $13,819.55 |
• Cheque #5904 was correctly written for
$9,340.55 to pay for computer equipment; however, the bookkeeper
misread the amount and entered it in the accounting records with a
debit to Computer Equipment and a credit to Cash as though it were
for $3,940.55. The NSF cheque was originally received from a
customer, Lisa Willis, in payment of her account. Its return was
not recorded when the bank first notified the company.
• The credit memo resulted from an electronic
fund transfer of $3,538 for a customer payment. The bank had
deducted a $50.00 bank service charge. The collection has not been
recorded.
Required:
1. Prepare a September 30 bank reconciliation for the
company. (Round your answers to 2 decimal
places.)
2. Prepare the General Journal entries needed to
adjust the book balance of cash to the reconciled balance.
(If no entry is required for a transaction/event, select
"No journal entry required" in the first account field. Round your
answers to 2 decimal places.)
Pelzer Company’s | ||||||
Bank Reconciliation | ||||||
Sep-30 | ||||||
Bank Statement Balance | 5,756.00 | Book Balance | 6,169.45 | |||
Add: | Add: | |||||
Deposit in Transit of Sep 30 | 1,163.00 | Note Collected | 3,488.00 | |||
Interest Received | 39.00 | |||||
Deduct: | Deduct: | |||||
Outstanding Checks(#5906) | 624.00 | Error in recording check #5904 | 5,400.00 | |||
Outstanding Checks(#5908) | 746.00 | NSF Check | 200.45 | |||
Outstanding Checks(#5893) | 1,453.00 | |||||
Adjusted Bank Balance | 4,096.00 | Adjusted Book Balance | 4,096.00 | |||
Journal Entries | ||||||
General Journal | Debit | Credit | ||||
1) | Cash | 39.00 | ||||
Interest Revenue | 39.00 | |||||
(To record interest revenue) | ||||||
2) | CASH | 3,488.00 | ||||
Note Receivable | 3488.00 | |||||
(To record note receivable) | ||||||
3) | Accounts Receivable | 200.45 | ||||
Cash | 200.45 | |||||
(To record NSF Check) | ||||||
4) | Computer Equipments | 5,400.00 | ||||
Cash | 5,400.00 | |||||
(To record error correction) | ||||||