Question
Daisy Company received a bank statement for February, as follows: Date Checks Deposits Balance Feb. 1 $ 4,524.80 7 $ 2,700.33 $8,642.61 9 3,484.81 14
Daisy Company received a bank statement for February, as follows:
| Date | Checks | Deposits | Balance | ||
|---|---|---|---|---|---|
| Feb. | |||||
| 1 | $ 4,524.80 | ||||
| 7 | $ 2,700.33 | $8,642.61 | |||
| 9 | 3,484.81 | ||||
| 14 | 6.00 | SC | 460.00 | CM | |
| 16 | 274.09 | ||||
| 21 | 4,133.60 | 3,385.49 | |||
| 23 | 69.69 | NSF | |||
| 28 | $ 6,344.38 | ||||
SC = Service Charge; NSF - Check Returned; CM = Credit Memo; DM = Debit Memo
The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge (Miscellaneous expense). The companys accounting records contained the following information: Cash balance on February 28 from the books: $2,610.42 Cash Disbursements Cash Receipts Ck No. 155 $2,700.33 Feb. 7 $8,624.61 156 3,484.81 21 3,385.49 157 274.09 158 589.02 159 4,133.60 160 2,742.63 Note: All receipts are verified and correct. Required: 1. Prepare a bank reconciliation on February 28, 2016, for Daisy. 2. Prepare the journal entries that Daisy should record as a result of the reconciliation.
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Accounting Information Systems Controls And Processes
Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland
5th Edition
1119989485, 9781119989486
