Question
In: Accounting
Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted...
Gunnar Company gathered the following reconciling information in preparing its September bank reconciliation. Calculate the adjusted cash balance per books on September 30.
| Cash balance per books, September 30 | $ 3,181 |
| Deposits in transit | 421 |
| Notes receivable and interest collected by bank | 888 |
| Bank charge for check printing | 29 |
| Outstanding checks | 1,347 |
| NSF check | 144 |
a.$2,970
b.$3,896
c.$2,255
d.$3,114
Bank Reconciliation
The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:
Cash balance according to the company's records at July 31 $15,470.
Cash balance according to the bank statement at July 31, $16,510.
Checks outstanding, $3,140.
Deposit in transit, not recorded by bank, $2,520.
A check for $270 in payment of an account was erroneously recorded in the check register as $720.
Bank debit memo for service charges, $30.
a. Prepare a bank reconciliation, using the format shown in Exhibit 14.
| Mathers Co. | |
| Bank Reconciliation | |
| July 31 | |
| Cash balance according to bank statement | $ |
| Adjusted balance | $ |
| Cash balance according to company's records | $ |
| Adjusted balance | $ |
b. If the balance sheet is prepared for Mathers
Co. on July 31, what amount should be reported for cash?
$
c. Must a bank reconciliation always balance
(reconcile)?
Consider the following information taken from the cash account. Assume cash payments were 80% of collections.
| Cash | |
| ?? | Beginning balance |
| $115,375 | Collections |
| ?? | Disbursements |
| $80,275 | Ending balance |
How much was the beginning balance of the cash account?
a.$92,300
b.$103,350
c.$57,200
d.$35,100
Solutions
Expert Solution
| 1 | ||
| Cash balance per books, September 30 | 3181 | |
| Add: Notes receivable and interest collected by bank | 888 | |
| Less: Bank charge for check printing | 29 | |
| Less: NSF check | 144 | |
| Adjusted cash balance per books | 3896 | |
| Option B is correct | ||
| 2 | ||
| a | ||
| Mathers Co. | ||
| Bank Reconciliation | ||
| July 31 | ||
| Cash balance according to bank statement | 16510 | |
| Add deposit in transit, not recorded by bank | 2520 | |
| Deduct outstanding checks | 3140 | |
| Adjusted balance | 15890 | |
| Cash balance according to company's records | 15470 | |
| Add error in recording check as $720 instead of $270 | 450 | =720-270 |
| Deduct bank service charge | 30 | |
| Adjusted balance | 15890 | |
| b | ||
| Amount reported for cash $15890 | ||
| c | ||
| Yes, a bank reconciliation must always balance (reconcile) | ||
| 3 | ||
| Ending balance | 80275 | |
| Add: Disbursements | 92300 | =115375*80% |
| Less: Collections | 115375 | |
| Beginning balance | 57200 | |
| Option C is correct | ||
ekkarill92 answered 3 years agoRelated Solutions
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