Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

*blue is the part two, the green is referring to Comprehensive Problem 3 Part 3: Note: You must complete parts 1 and 2 before completing

image text in transcribedimage text in transcribedimage text in transcribed*blue is the part two, the green is referring to

Comprehensive Problem 3 Part 3: Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem. Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company. Use the Miscellaneous Administrative Expense account to record bank service charges. If an amount box does not require an entry, leave it blank. Credit Description Date Debit Dec. 31 Miscellaneous Administrative Expense v Accounts Payable v Cash v Feedback V Check My Work 3. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. a. Balance according to the bank statement at December 31, $283,00o. b. Balance according to the ledger at December 31, $245,410. c. Checks outstanding at December 31, $68,540. d. Deposit in transit, not recorded by bank, $29,500. e. Bank debit memo for service charges, $750. f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000. Kornett Company Bank Reconciliation December 31, 20Y5 Balance according to bank statement v 283,000 Add: Deposit in transit on December 31 v 29,500 68,540 V Deduct: Outstanding checks v Adjusted balance 243,960 V Balance according to company's records v 245,410 Deduct: Bank service charges v 750 Dadust EmA in manandina ahnak %24 Kornett Company Bank Reconciliation December 31, 20Y5 Balance according to bank statement v 283,000 Add: Deposit in transit on December 31 v 29,500 Deduct: Outstanding checks v 68,540 V Adjusted balance 243,960 Balance according to company's records v 245,410 Deduct: Bank service charges 750 V 700 v Deduct: Error in recording check v 1,450 Total deductions 2$ Adjusted balance 243,960

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions