Bank rec and journal entry for Videosoft company- I can't figure out how to balance them! If you could provide journal entries for explanation that would be awesome.

Accounting 201 Bank Reconciliation Problems Ex. 141 Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item. Code A Add to cash balance per books B Deduct from cash balance per books C Add to cash balance per bank D Deduct from cash balance per bank E Does not affect the bank reconciliation Items: D____1.Outstanding checks. B____2.Bank service charge. B____3.Check for $320 correctly written and paid by the bank but incorrectly entered in the book records for $230. C____4.Deposit in transit. B____5.Bank returns deposited check marked NSF. A____6.Bank collects notes receivable and interest for depositor. B____7.Bank debit memorandum for check printing fees. B____8.Bank debit memorandum for electronic funds transfer to creditor. E____9.Bank charged a check against the company that should have been charged to another company. A____10. A check for $236 was correctly paid by the bank but was incorrectly entered in the book records for $263. 1 Accounting 201 Bank Reconciliation Problems 6A-1 Able.com received a bank statement from Lee Bank indicating a bank balance of $8,000. Based on Able.com's check stubs, the ending checkbook balance was $6,600. Your task is to prepare a bank reconciliation for Able.com as of July 31, from the following information (do not provide journalize entries): (a) Checks outstanding: no. 122, $1,000; no. 130, $690. (b) Deposits in transit $1,110. (c) Bank service charges $83. (d) Lee Bank collected a note for Able.com, $910, less a $7 collection fee. 6A-2 From the following bank statement, please (1) complete the bank reconciliation for Rick's Deli and (2) do not provide journalize entries. (a) A deposit of $3,000 in is transit. (b) Rick's Deli has an ending checkbook balance of $6,600. (c) Checks outstanding: no. 111, $600; No. 119, $1,200; no. 121, $330. (d) Jim Rice's check for $300 bounced due to lack of sufficient funds. Lowell National Bank Rio Mean Brand Bugna, Texas Rick's Deli 8811 2nd Street Bugna, Texas Old Balance Checks in Order of Payment Deposits 6,000 Date New Balance 2/2 90.00 2/3 210.00 6,000 5,700 150.00 300.00 2/10 5,850 600.00 600.00 2/15 5,850 2 Accounting 201 Bank Reconciliation Problems 300.00 NSF 600.00 30.00 SC 2/20 5,850 1,200.00 1,200.00 300.00 2/24 5,850 180.00 2/28 5,400 3 Accounting 201 Bank Reconciliation Problems P8-3A On May 31, Sosa Company had a cash balance per books of $6,781.50. The bank statement from Sandwich Community Bank on that date showed a balance of $6,804.60. A comparison of the statement with the cash account revealed the following facts: 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $846.15. The bank credited Sosa Company for the correct amount. 3. Outstanding checks at May 12 totaled $276.25. Deposits in transit were $1,936.15. 4. On May 18, the company issued check No.1181 for $685 to Kap Shin, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Sosa Company for $658. 5. A $3,000 note receivable was collected by the bank for Sosa Company on May 31 plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note. 6. Included with the cancelled checks was a check issued by Tacamoto Company to Yee Chow for $600 that was incorrectly charged to Sosa Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $700 for a check issued by John Lewis, a customer, to Sosa Company on account. Instructions: (a) Prepare the bank reconciliation at May 31. 4 Accounting 201 Bank Reconciliation Problems 7-1B The Malamura Company deposits all receipts in the bank and makes all payments by check. On November 30 its Cash account has a balance of $2,289. The bank statement on November 30 shows a balance of $2,894. You are given the following information with which to reconcile the bank statement: (a) A deposit of $320 was placed in the night depository on November 30 and did not appear on the bank statement. (b) The reconciliation for October, the previous month, showed three checks outstanding on October 31: no. 1727 for $81.30; no. 1730 for $127.40; and no. 1732 for $62.40. Checks no. 1727 and 1730 were returned with the November bank statement; however, check no. 1732 was not returned. (c) Check no. 1742 for $98.50, no. 1743 for $46.27, no. 1744 for $37.92, and no. 1745 for $200.91 were written during November but were not returned by the bank. (d) You compare the cancelled checks with the entries in the checkbook and find that check no. 1737 for $58, payable to C.R. Malamura, the owner, for her personal use, was written correctly. However, the check was recorded in the checkbook as $85. (e) Included in the bank statement was a bank debit memo for service charges, $12. (f) A bank credit memo was also enclosed for the collection of a note signed by L. B. Norman, $464, including $436 principal and $28 interest. Instructions: (a) Prepare a bank reconciliation as of November 30, assuming that the debit and credit memos had not been recorded. 5 Accounting 201 Bank Reconciliation Problems 7-4A On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit memo for $149 is for an NSF check written by N. Carlton. Check no. 1924 for $336, payable to Garner Company (a creditor), was incorrectly recorded in the checkbook and journal as $200. The balance of the Cash account as of August 31 is $1,509. Outstanding checks as of August 31 are: no. 1928, $119; no. 1929, $243. The accountant notes that the deposit of August 31 for $261 did not appear on the bank statement. Instructions: (a) Prepare a bank reconciliation as of August 31, assuming that the debit memos have not been recorded. (b) Record the necessary journal entries. (c) Complete the bank form to determine the adjusted balance of cash. PEABODY NATIONAL BANK Kravsnik Company 416 Seneca Avenue Kansas City, Missouri 64102 SUMMARY: CHECKS/OTHER DEBITS Account No. 152-6 55-217 Statement Date: August 1-31 Balance Last Statement Amount of Checks and Debits Number of Checks Amount of Deposits and Credits Number of Deposits Balance this Statement CHECKS CHECK NUMBER DATE POSTED 1917 8-04 1918 $1,360.00 $2,698.00 11 $2,651.00 7 $1,313.00 CHECK NUMBER DATE POSTED 172.00 1923 8-09 621.00 8-04 76.00 1924 8-17 336.00 1919 8-05 146.00 1925 8-17 14.00 1920 8-07 206.00 1926 8-23 533.00 1921 8-07 139.00 1927 8-28 94.00 1922 8-08 200.00 OTHER DEBITS AMOUNT DESCRIPTION DM DM NSF check Service charge AMOUNT DATE POSTED AMOUNT 8-31 8-31 149.00 12.00 6 Accounting 201 Bank Reconciliation Problems DEPOSITS/OTHER CREDITS DEPOSITS DATE POSTED AMOUNT DATE POSTED AMOUNT 8-02 326.00 8-18 419.00 8-05 412.00 8-24 398.00 8-09 437.00 8-28 291.00 PLEASE EXAMINE THIS STATEMENT CAREFULLY. REPORT ANY POSSIBLE ERRORS IN 10 DAYS. Code Symbols CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction (0) (a) 9-5B Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. On October 5, Sam Yao, Attorney at Law, received his September bank statement from First Security National Bank. Enclosed with the bank statement was a debit memorandum for $112 that covered an NSF check issued by Julia Anderson, a credit customer. The firm's checkbook contained the following information about deposits made and checks issued during September. The balance of the Cash account and the checkbooks on September 30 was $16,622. Date Transactions Sept. 1 Balance $13,000 1 Check 124 200 3 Check 125 20 3 Deposit 6 Check 126 450 10 Deposit 820 11 Check 127 400 15 Check 128 150 21 Check 129 120 22 Deposit 25 Check 130 8 25 Check 131 40 27 Check 132 70 1,000 1,460 7 Accounting 201 Bank Reconciliation Problems 28 Deposit 1,800 FIRST SECURITY NATIONAL BANK Sam Yao, Attorney-at-Law 2222 Sam Houston Lane Columbus, OH 44106 CHECKS Account No. 11-4568.03 Period Ending Sept. 30 DEPOSITS Beginning Balance DATE BALANCE August 31 13,000.00 September 3 14,000.00 September 6 13,800.00 September 11 14,200.00 450.00- September 15 13,750.00 120.00- September 19 13,630.00 September 23 15,090.00 1,000.00+ 200.00400.00- 20.00- 820.00+ 1,460.00+ 40.00- 8.00- September 25 15,042.00 7.50- SC 112.00- DM September 28 14,922.50 Instructions: (a) Prepare a bank reconciliation statement for the firm as of September 30. (b) Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries October 5. (c) Analyze: How many checks were paid (cleared the bank) according to the September 30 bank statement? 9-6B Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. On June 30, the balance in Wilson Builder's checkbook and Cash account was $12,837.18. The balance on the bank statement on the same date was $15,084.06. Notes 8 Accounting 201 Bank Reconciliation Problems (a) The following checks were issued but have not yet been paid by the bank: Check 335 for $297.90; check 337 for $195; and check 339 for $850.80. (b) A credit memorandum shows that the bank has collected a $3,000 note receivable and interest of $60 for the firm. These amounts have not yet been entered in the firm's records. (c) The firm's records indicate that a deposit of $1,888.14 made on June 30 does not appear on the bank statement. (d) A service charge of $28.68 and a debit memorandum of $240 covering an NSF check have not yet been entered in the firm's records. (The check was issued by Alan Hutchins, a credit customer.) Instructions: (a) Prepare a bank reconciliation statement for the firm as of June 30. (b) Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries July 3. (c) Analyze: After all the journal entries have been recorded and posted, what is the balance in the cash account? 9 Accounting 201 Bank Reconciliation Problems Problem 5 The following information is available for Abdul Saleem, Inc., as of May 31: (a) Cash on the books as of May 31 amounted to $42,754.16. Cash on the bank statement for the same date was $52,351.46. (b) A deposit of $5,220.94, representing cash receipts of May 31, did not appear on the bank statement. (c) Outstanding checks totaled $3,936.80. (d) A check for $1,920.00 retur4ned with the statement was recorded incorrectly in the check register as $1,380.00. The check was for a cash purchase of merchandise. (e) The bank service charge for May amounted to $25. (f) The bank collected $12,240.00 for Abdul Saleem, Inc., on a note. The face value of the note was $12,000.00. (g) An NSF check for $183.56 from a customer, Ann Greeno, was returned with the statement. (h) The bank mistakenly charged to the company account a check for $850.00 drawn by another company. (i) The bank reported that it had credited the account for $240.00 in interest on the average balance for May. Instructions: (a) Prepare a bank reconciliation for Abdul Saleem, Inc., as of May 31. (b) Prepare the entries in journal form necessary to adjust the accounts. (c) What amount of cash should appear on Abdul Saleem, Inc.'s balance sheet as of May 31? (d) User Insight: Why is a bank reconciliation considered an important control over cash? 10 Accounting 201 Bank Reconciliation Problems Ex. 14.6 Indicate how each of the following items would be shown on the bank reconciliation for Shaggy Company at December 31, 2006. 1. 2. 3. 4. 5. 6. 7. 8. A check written on the account of Shappy Company was mistakenly cleared on our account. The bank statement included a debit memorandum for a check printing charge. Cash deposited for the last two days in December was not included in the bank balance. The bank collected a note receivable plus interest on our behalf. A check received from one of our customers was returned NSF. Six checks written by the company had not yet cleared the bank as of the statement date. The statement included a debit memorandum for an EFT to a supplier. The statement included a debit memorandum for the December service charge. 11 Accounting 201 Bank Reconciliation Problems P8-5A Videosoft Company maintains a checking account at the Intelex Bank. At July 31, selected data from the general ledger account and the bank statement are as follows: Cash in Bank Per Books Balance, July 1 July receipts $17,600 July debits Balance, July 31 $18,800 82,000 July credits July disbursements Per Bank 80,470 76,900 . 74,740 $22,700 $24,530 Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $1,470 for the collection of a $1,400 note plus interest revenue of $70. The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $40 for printing additional company checks. You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320; (2) a salary check to an employee for $255 was recorded by the bank for $155. The June 30 bank reconciliation contained only two reconciling items: deposits in transit $5,000 and outstanding checks of $6,200. Instructions: (a) Prepare a bank reconciliation at July 31. (b) Journalize the adjusting entries to be made by Videosoft Company at July 31. Assume that the interest on the note has been accrued. 12