Question
In: Accounting
Preparation of bank reconciliation The April 30, 2016, bank statement for Comet Company showed a cash...
Preparation of bank reconciliation
The April 30, 2016, bank statement for Comet Company showed a cash balance of $7,582. The cash account in the company's general ledger (G/L), according to the company's records on April 30, had a balance of $4,643. The following additional data were revealed during the reconciliation process:
1.A deposit of $652 that had been made by the company on March 31 was processed by the bank in April, and a deposit of $1,531 made on April 30 had not yet been processed by the bank.
2.The bank statement listed a deposit for $360 that was mistakenly put in Comet Company's bank account; it should have gone to Comment Company's account.
3.Comet Company determined that there were three cheques that had not yet been processed by the bank: #466 for $1,250, #467 for $520, and #470 for $1,350.
4.The bank had collected a note receivable for $1,000 from one of Comet Company's customers. An additional $15 in interest had been added to its account.
5.The bank service charge for the month was $25.
Question:
a.
Prepare a bank reconciliation for Comet Company as at April 30, 2016.
b.
What cash balance should Comet Company report on its statement of financial position as at April 30, 2016?
c.
Prepare the journal entries that are required to bring Comet Company's cash account to its correct balance.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The April 30 bank statement for KMaxx Company and the April ledger account for cash are...
The April 30 bank statement for KMaxx Company and the
April ledger account for cash are summarized here:
BANK STATEMENT
Checks
Deposits
Other
Balance
Balance, April 1
$6,000
April 5
#101
$ 700
5,300
April 9
$2,500
7,800
April 12
#102
200
7,600
April 19
#103
500
7,100
April 22
#104
1,000
6,100
April 27
EFT payment
$200
5,900
April 29
NSF check
100
5,800
April 30
Service charge
25
5,775
Cash (A)
April 1
Balance
6,000
April 8
2,500...
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bank statement and the accompanying canceled checks and memos with
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Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a...
Bank Reconciliation and Entries
The cash account for American Medical Co. at April 30 indicated
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accompanying canceled checks and memos with the records revealed
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Checks outstanding totaled $4,630.
A deposit of $4,820, representing receipts of April 30, had
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The bank collected $2,510 on a $2,380...
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Bank Reconciliation and Entries
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accompanying canceled checks and memos with the records revealed
the following reconciling items:
Checks outstanding totaled $4,890.
A deposit of $5,090, representing receipts of April 30, had
been made too late to appear on the bank statement.
The bank collected $2,650 on a $2,510...
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Bank Reconciliation and Entries
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accompanying canceled checks and memos with the records revealed
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Checks outstanding totaled $5,640.
A deposit of $5,880, representing receipts of April 30, had
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The bank collected $3,060 on a $2,900...
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accompanying canceled checks and memos with the records revealed
the following reconciling items:
Checks outstanding totaled $5,980.
A deposit of $6,230, representing receipts of April 30, had
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The bank collected $3,240 on a $3,070...
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A deposit of $4,650, representing receipts of April 30, had
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The bank collected $2,420 on a $2,290...
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