Question

In: Accounting

The following information is available to reconcile Johnson Company's book balance of cash with its bank...

The following information is available to reconcile Johnson Company's book balance of cash with its bank statement cash balance at September 30. REQUIREMENTS: (1) Prepare the bank reconciliation for Johnson Company as of September 30. (2) Prepare the journal entries necessary to make the company's book balance of cash equal to the reconciled cash balance as of September 30.

a-The September 30 cash balance according to the accounting records is $3,220; and the bank cash balance for that date is $3,800.

b-Johnson's September 30 daily cash receipts of $1,600 were placed in the bank's night depositary on September 30 but do not appear on the September 30 bank statement.

c-Johnson's comparison of cancelled checks with its books shows three outstanding checks: No 6242 for $400, No 6273 for $800 and No 6282 for $200.

d-When the September checks are compared with entries in the accounting records, it is found that Check No 6297 had been correctly drawn for $680 to pay for office supplies but was erroneously entered in the accounting records as $860.


e-The bank statement shows that the bank collected a note receivable and increased Johnson's account for $940. Johnson had not yet recorded this transaction before receiving the bank statement.

f- The bank statement included an NSF check for $300 received from Wales, Inc. in payment of its account. It also included a $40 charge for check printing. Johnson had not yet recorded these transactions before receiving the bank statement.

Solutions

Expert Solution

1.

Johnson Company
Bank Reconciliation
September 30
Balance as per bank statement $   3,800
Add: Deposit in transit $   1,600
$   5,400
Less: Outstanding checks
#6242 $   400
#6273 $   800
#6282 $   200
$   1,400
Adjusted bank balance $   4,000
Balance as per company book   $   3,220
Add:
Note collected by bank $   940
Error in recording of check #6297 ($860-$680) $   180
$   1,120
$   4,340
Less:  
Check printing charges $     40
NSF Check 300
$      340
Adjusted book balance $   4,000

2.

Date Account title Debit Credit
Sep-30 Cash $   1,120
Note receivable $   940
Office Supplies $   180
(To record increase in cash)
Sep-30 Misc. expenses $        40
Accounts payable $      300
Cash $   340
(To record decrease in cash)

You can reach me over comment box if you have any doubts. Please rate this answer

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 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, 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 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