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E5-8 Prepare bank reconciliation and adjustments. The following information pertains to Lance Company. 1. Cash balance...

E5-8 Prepare bank reconciliation and adjustments.
The following information pertains to Lance Company.
1. Cash balance per bank, July 31, $7,328.
2. July bank service charge not recorded by the depositor $38.
3. Cash balance per books, July 31, $7,364.
4. Deposits in transit, July 31, $2,700.
5. $2,016 collected for Lance Company in July by the bank through electronic funds transfer.
The collection has not been recorded by Lance Company.
6. Outstanding checks, July 31, $686.
Instructions
(a) Prepare a bank reconciliation at July 31, 2017.
(b) Prepare a tabular analysis for the adjustments at July 31 on the books of Lance
Company. Use the following column headings: Cash, Accounts Receivable, Revenues,
and Expenses. Include margin explanations for the changes in revenues and expenses.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a) LANCE COMPANY
Bank Reconciliation
July 31, 2017
Cash balance per bank statement Value
Add: Deposits in transit Value
?
Less: Outstanding checks Value
Adjusted cash balance per bank ?
Cash balance per books Value
Add: Collection of note receivable Value
?
Less: Bank service charge Value
Adjusted cash balance per books ?
Stockholders' Equity
(b) Assets = Liabilities + Account
Cash + Accts. Rec. = + Revenues -Expenses
July 31 Value Value
31 Value Value Text
After you have completed E5-8, consider the following additonal question.
1. Assume that deposit in transit, outstanding checks and cash balance per books changed to
$3,600, $886 and $8,064 respectively. Show the impact of these changes on the bank
reconciliation.

SOLVE FOR MISSING VALUES , CASH , LIABILITIES, STOCK HOLDERS EQUITY AND QUESTION 1

Solutions

Expert Solution

The missing values of liabilities, stock holders' equity and accounts receivable can not be determined without more information.

ekkarill92 answered 2 years ago
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