Question

In: Accounting

Seth and Company Inc. has provided the information to be able to reconcile its bank statement...

Seth and Company Inc. has provided the information to be able to reconcile its bank statement as of December 31, 2018. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40. b. Check No. 1273 for $4,589.30 and Check No. 1282 for $400, both written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. 1231 for $2,289 and No. 1242 for $410.40, were outstanding on the most recent November 30 reconciliation. Check No. 1231 is listed with the December canceled checks, but Check No. 1242 is not. c. When the December checks are compared with entries in the accounting records, it is found that Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. The bank statement included a $762.50 charge that dealt with an NSF check for $745 received from a customer, Titus Industries, in payment of its account. The bank assessed a $17.50 fee for processing it. e. The bank statement also included a $99 in miscellaneous expenses for check printing. f. The bank statement shows that the bank collected $19,000 cash on a note receivable for the company, deducted a $20 collection expense, and credited the balance to the company’s Cash account. Seth and Company Inc. did not record this transaction before receiving the statement. g. Seth and Company Inc. December 31 daily cash receipts of $9,583.10 were placed in the bank’s night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31, 2018.

Solutions

Expert Solution

Bank reconciliation Statement
December 31, 2018
Balance As per Bank Statement 46822.4
ADD
Deposit in transit           9,583.10 9583.1
Less
Check Outstanding
No 1242               410.40
No 1273           4,589.30
No 1282               400.00 5399.7
Adjusted Balance 51005.8
Balance as per Bank Book 32878.3
Add  
Note Receivable Net Collection charge         18,980.00
Error In recording (3465-3456)                    9.00 18989
Less
NSF check               745.00
Processing Fees                 17.50
Check Printing Fees                 99.00 861.5
Adjusted cash balance 51005.8

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The following information is available to reconcile a company's book balance of cash with its bank...
The following information is available to reconcile a company's book balance of cash with its bank statement’s cash balance as of June 30. The June 30 cash balance according to the accounting records is $8,542, and the bank statement cash balance for that date is $8,047. a) The bank erroneously cleared a $95 check against the account in June that was not issued by the company. The check documentation included with the bank statement indicated that another company issued the...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,758 debit balance, but its July bank statement shows a $28,299 cash balance. Check No. 3031 for $1,600 and Check No. 3040 for $792 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,758 debit balance, but its July bank statement shows a $28,299 cash balance. Check No. 3031 for $1,600 and Check No. 3040 for $792 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,758 debit balance, but its July bank statement shows a $28,299 cash balance. Check No. 3031 for $1,600 and Check No. 3040 for $792 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.    On July 31, the company’s Cash account has a $25,033 debit balance, but its July bank statement shows a $26,994 cash balance. Check No. 3031 for $1,350, Check No. 3065 for $451, and Check No. 3069 for $2,118 are outstanding checks as of July 31. Check No. 3056 for July rent expense was correctly written and...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.    On July 31, the company’s Cash account has a $25,033 debit balance, but its July bank statement shows a $26,994 cash balance. Check No. 3031 for $1,350, Check No. 3065 for $451, and Check No. 3069 for $2,118 are outstanding checks as of July 31. Check No. 3056 for July rent expense was correctly written and...
The following information is available to reconcile Cloy Company's book balance of cash with its bank...
The following information is available to reconcile Cloy Company's book balance of cash with its bank statement cash balance as of March 31, 2019. The March 31, 2019 cash balance according to the accounting records is $58,542, and the bank statement cash balance for that date is $68,047. a. The bank erroneously cleared a $395 check against the account in June that was not issued by Cloy. The check documentation included with the bank statement indicates the check was actually...
The following information is available to reconcile Cloy Company's book balance of cash with its bank...
The following information is available to reconcile Cloy Company's book balance of cash with its bank statement cash balance as of March 31, 2019. The March 31, 2019 cash balance according to the accounting records is $58,542, and the bank statement cash balance for that date is $68,047. a. The bank erroneously cleared a $395 check against the account in June that was not issued by Cloy. The check documentation included with the bank statement indicates the check was actually...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31.    On July 31, the company’s Cash account has a $24,836 debit balance, but its July bank statement shows a $27,850 cash balance Check No. 3031 for $1,770, Check No. 3065 for $661, and Check No. 3069 for $2,538 are outstanding checks as of July 31. Check No. 3056 for July rent expense was correctly written and...
The following information is available to reconcile Branch Company’s book balance of cash with its bank...
The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2016. On July 31, the company’s Cash account has a $25,648 debit balance, but its July bank statement shows a $28,486 cash balance. Check No. 3031 for $1,720 and Check No. 3040 for $852 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT