Chapter $8$

RPL Co$.\text{'}$s accountant is preparing the bank reconciliation for the month. The following

are shown on the document. Will each be shown as a debit or credit memo to the

account? By how much will each item cause the balance of RPL Co$.\text{'}$s bank account to

increase or decrease?

a$.$ Payment to Office Supply Co$.$ for $$550$

b$.$ Checks from customers amounting to $$642$ marked NSF

c$.$ Original payment to a supplier, EC$,$ recorded as $$620,$ corrected to $$260$

Moe's Mowers received its bank statement for the month of July. The bank statement

included the items below. Determine if each item will be a credit or debit memo and if

each causes the bank account balance to increase or decrease.

a$.$ Payments from various customers made by EFT

b$.$ Proceeds for the company's construction loan

c$.$ Service charges for the processing of the loan

Tiger Honey's cash ledger shows a balance of $$2,870\mathrm{.}20,$ which includes a deposit in

transit of $$890\mathrm{.}60$ and outstanding checks totaling $$500\mathrm{.}75.$ Prepare a bank

reconciliation for the company with the given bank statement for the month of August.

Record the journal entries to update the company's cash ledger to the adjusted balance.

All electronic transfers received should be applied to accounts receivable, while

electronic transfers sent should be applied to the company's outstanding accounts

payable balance with Busy Bees.

Charles K$.$ Bank of the Carolinas

Page $1$

Account number $215350$

From $\frac{7}{31}\frac{?}{20Y5}$ to $\frac{8}{31}\frac{?}{20Y5}$

Balance $7/31$ $$2,397\mathrm{.}72$