The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35 which differs from the $1.879.50 book balance of cash on that date. In attempting to reconcile the difference, the accountant noted the following facts: 1. The bank recorded a service charge of $15 which was not recorded on the books of SIAST Company. 2. A deposit of $500 was made on the last day of the month but was not recorded by the bank. 3. A cheque written for $176 had been recorded on the SIAST Company books as $167. The bank paid the correct amount. The cheque was in payment of utilities. 4. Cheque #522 was written during September but has not been processed by the bank. The amount was $422.85. 5. Cheque # 473 for $1,000 is still outstanding from August. 6. A cheque for $100 deposited by SIAST Company from Jim White, a credit customer, was returned marked "Not Sufficient Funds". 7. A credit memorandum stated that the bank collected a note receivable of $200 for SIAST Company and charged a $2 collection fee. SIAST Company had not previously recorded the collection. REQUIRED: 1. Prepare, in good form, a bank reconciliation which shows the correct cash balance on September 30, 2014. 2. Prepare the journal entries to correct the company's cash account. The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35 which differs from the $1.879.50 book balance of cash on that date. In attempting to reconcile the difference, the accountant noted the following facts: 1. The bank recorded a service charge of $15 which was not recorded on the books of SIAST Company. 2. A deposit of $500 was made on the last day of the month but was not recorded by the bank. 3. A cheque written for $176 had been recorded on the SIAST Company books as $167. The bank paid the correct amount. The cheque was in payment of utilities. 4. Cheque #522 was written during September but has not been processed by the bank. The amount was $422.85. 5. Cheque # 473 for $1,000 is still outstanding from August. 6. A cheque for $100 deposited by SIAST Company from Jim White, a credit customer, was returned marked "Not Sufficient Funds". 7. A credit memorandum stated that the bank collected a note receivable of $200 for SIAST Company and charged a $2 collection fee. SIAST Company had not previously recorded the collection. REQUIRED: 1. Prepare, in good form, a bank reconciliation which shows the correct cash balance on September 30, 2014. 2. Prepare the journal entries to correct the company's cash account.
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
Students also viewed these accounting questions
-
The Odum Corporations cash account showed a balance of $17,198 on March 31, 2007. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information...
-
The bank statement dated February 28, 2018, for Crystal Clear follows: Additional data for the bank reconciliation follow: a. The company had the following EFT transactions: EFT credit on February...
-
The accounting records of Osgood Carpets showed a balance of $3,000 in Estimated Warranty Payable at December 31, 2013. In the past, Osgoods warranty expense has been 5% of sales. During 2014, Osgood...
-
Computer Technologies provides maintenance service for computers and office equipment for companies throughout the Northeast. The sales manager is elated because she closed a $300,000 three-year...
-
Prepare the necessary general journal entries for the month of October for Stringer Company for each situation given below. Oct 1 Started computer business by selling $50,000 of common stock. Oct. 5...
-
Refer to Exercise 12- 22. In Exercise 12- 22, Stanmore Corporation makes a special- purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2013 to be distinct...
-
Martin Corporation has 250,000 authorized shares of $1 par value common stock, of which 200,000 are issued, including 20,000 shares of treasury stock. On October 15, the corporations board of...
-
From the ledger balances below, prepare a trial balance for Yeager Company at June 30, 2014. All account balances are normal. Accounts Payable.............. $ 1,000 Service Revenue ..................
-
A homeowner wants to build, along her driveway, a garden surrounded by a fence. $2 per foot $6 per foot driveway If the garden is to be 3,200 square feet, and the fence along the driveway costs $6...
-
Using loop ACFDEA from Figure 14.10, and the data from Table 14.6, what is the (a) Misclosure in the X component? (b) Misclosure in the Y component? (c) Misclosure in the Z component? (d) Length of...
-
You have a set of n files of sizes f1, f2, f3,...,fn that you want to store in a hard disk. The disk is divided into segments, each of size K. We make the assumptions that: (i) Each file is of size K...
-
Given the following information, calculate the effective monthly rent payment: lease term: 10 years; concession: first year free rent to be spread over the term of the lease; rental space: 5000...
-
Question 2. A hospital is trying to cut down on emergency room wait times. It is interested in the amount of time patients must wait before being called back to be examined. The population standard...
-
The patient has high copays. Employers no longer offer coverage, resulting in high costs to the employee. Universal health care is expensive. Catastrophic insurance options do not always cover...
-
A block with a mass of m = 2500 grams slides towards a spring with a spring constant k = 320 N/m. When the block stops, the block is able to compress the spring as far as 7.5 cm. The coefficient of...
-
A naive hyperbolic discounter with a yearly beta=0.5 and delta=1 has 10,000 to invest for retirement, which is 30 years from today. Her utility function for wealth at retirement is u(w)=w. The agent...
-
Offers can generally be revoked any time prior to: Multiple Choice Acceptance Continuation Consideration Estoppel
-
In Exercises 1558, find each product. (9 - 5x) 2
-
Sardel Company reported net income of $29,975 for 2007. During all of 2007 the company had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the years dividends had...
-
From inception of operations in 2004 Summit carried no allowance for doubtful accounts. Uncollectible receivables were expensed as written off, and recoveries were credited to income as collected. On...
-
Briefly describe how to determine and record the gain or loss on the sale of an investment in available-for-sale securities.
-
Purchase and Disposal of Operating Asset and Effects on Statement of Cash Flows On January 1, 2008, Mansfield Inc. purchased a medium-sized delivery truck for $45,000. Using an estimated useful life...
-
Sketch cost behavior graphs (Learning Objective 1) Sketch graphs of the following cost behaviors. In each graph, the \(y\)-axis should be "total costs" and the \(\mathrm{x}\)-axis should be "volume...
-
Computer fixed costs per unit (Learning Objective 2) Sport-time produces high-quality basketballs. If the fixed cost per basketball is \(\$ 3\) when the company produces 12,000 basketballs, what is...
Study smarter with the SolutionInn App