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In: Accounting

i want the asnwere as soon as possible please Pelzer Company reconciled its bank and book...

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.)

Solutions

Expert Solution

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)

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