On November 30, 2001, Dr. Smith had a balance of $6,502.88 in his Cash Ledger account....

On November 30, 2001, Dr. Smith had a balance of $6,502.88 in his Cash Ledger account. On that date the bank statement indicated a balance of $8,243.75. Comparison of returned checks and bank memoranda revealed the following:

1. Deposits in transit November 30 amounted to $3,407.

2. Outstanding checks at November 30 totaled $2,140.37.

3. The Bank erroneously changed a $950 check of the Barkley Company against Dr. Smith's Bank account.

4. Bank service charges for November amounted to $20.00.

5. The bank collected a note for Dr. Smith for $3,750 plus interest of $250.

6. Included with the returned checks is a memo indicating that J. Martin's (a patient) check for $882 has been returned NSF (bounced)

7. Dr. Smith recorded a $95.50 check (it cleared for $95.50) for supplies as $955.

REQUIRED:

A. Prepare a bank reconciliation for Dr. Smith.

B. Journalize the necessary entires in journal form.

Solutions

Expert Solution

Bank Reconciliation Statement
Balance as per Bank Stataement	8243.75
Add: Deposit in transit	3407.00
Add: Error for charging check	950.00
Subtotals	12600.75
Less: Outstanding Checks	2140.37
Adjusted Balance as per Bank Statement	10460.38

Balance as per Books	6502.88
Add: Notes receivbale collected	4000.00
Add: Error of recording check for supplies	859.50
Subtotals	11362.38
Less: Sevice charges	20.00
Less: NSF check	882.00
Adjusted balance as per Books	10460.38

Journal entries:
Cash account Dr.	4000.00
Notes receivable Account		3750
Interest revenue		250

Cash account Account	859.50
Supplies		859.5

Accounts receivable Account Dr.	882.00
Cash account		882

Misc. expense Account Dr.	20.00
Cash account		20

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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...

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620....

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $89,620. The bank statement indicated a balance of $128,660 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $32,700. B. A deposit of $18,550, representing receipts of November 30, had been made too late to appear on the bank statement. C. The bank collected $26,750 on a...

The cash account of Concord Corporation shows a ledger balance of $3,968.70 on June 30, 2020....

The cash account of Concord Corporation shows a ledger balance of $3,968.70 on June 30, 2020. The bank statement as at that date shows a balance of $4,128. When the statement was compared with the cash records, the following facts were determined: 1. There were bank service charges for June of $30. 2. A bank memo stated that a note from Bao Dai for $880 and interest of $34 had been collected on June 29, and the bank had made...

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...

The unadjusted trial balance at November 30 is below: No. Account Name Debit Credit 101 Cash...

The unadjusted trial balance at November 30 is below: No. Account Name Debit Credit 101 Cash $ 99,876 106 Accounts receivable 5,300 125 Supplies - inventory 10,000 128 Prepaid insurance 6,400 131 Prepaid rent 35,000 151 Office equipment 20,000 152 Accumulated depreciation - office equipment $ 0 155 Computer equipment 15,000 156 Accumulated depreciation - computer equipment 0 201 Accounts payable 0 205 Wages payable 0 221 Unearned revenue 1,500 301 Common stock 150,000 315 Retained earnings 0 401 Service...

COUNTRYSIDE PAINTING SPECIALISTS Trial Balance November 30, 2018 Account Title Balance Debit Credit Cash $ 12,100...

COUNTRYSIDE PAINTING SPECIALISTS Trial Balance November 30, 2018 Account Title Balance Debit Credit Cash $ 12,100 Accounts Receivable 1,300 Office Supplies 200 Painting Equipment 13,500 Accounts Payable $ 3,300 Unearned Revenue 1,700 Common Stock 15,000 Dividends 3,500 Service Revenue 15,600 Advertising Expense 550 Rent Expense 1,800 Salaries Expense 2,400 Utilities Expense 250 Total $ 35,600 $ 35,600 P2-29A Requirement 1 Date Accounts and Explanation Post Ref. Debit Credit July 1 Cash 63,000 Common Stock 63,000 5 Rent Expense 510 Cash...

On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts...

On November 30, 2016, Davis Company had the following account balances: Debit Credit Cash $3,090 Accounts Receivable 9,900 Allowance for Doubtful Accounts $100 Inventory 17,750 Supplies 1,400 Land 9,000 Buildings and Equipment 42,000 Accumulated Depreciation 4,200 Accounts Payable 10,700 Common Stock 20,000 Retained Earnings (1/1/2016) 42,400 Dividends 2,000 Sales Revenue 69,700 Cost of Goods Sold 36,860 Salaries Expense 12,500 Advertising Expense 8,100 Other Expenses 4,500 During the month of December, Davis entered into the following transactions: Date Transaction Dec. 4...

On September 30, 2017, the Parker Corporation had a balance of $50,500 in its cash account....

On September 30, 2017, the Parker Corporation had a balance of $50,500 in its cash account. Additional information: Actual sales: August $180,000 September 200,000 Budgeted sales: October $195,000 November 210,000 10% of each month’s sales are cash sales. Of the remaining credit sales, collections are 70% in the month of the sale and 25% in the following month. The remaining 5% is uncollectible. Inventory costs average 75% of sales (i.e., October sales will require $146,500 of inventory and November sales...

The information relates to the Cash Account in the ledger of Covid Company : Balance June...

The information relates to the Cash Account in the ledger of Covid Company : Balance June 1 $7,150 ; cash deposited $64,000; Balance June 30 $17,404 ; checks written $63,746. The June bank statement shows a balance of $16,122 on June 30. The following are memoranda from bank : Collection of $1,500 note plus interest $30; Interest earned on checking account $45; NSF check from Violet Jones $725; Safety deposit box rent $65. At June 30, deposits in transit were...

Subjects