Identify if the item should be included as a reconciling item in Cullumber's bank reconciliation. Indicate if a journal entry will be needed to correct any of the accounts for Cullumber. 1. A deposit of collections on account from customers was made, but the amount did not match what. appeared on the bank statement. The correct amount of $4,164, shown on the bank statement, should have been used in Cullumber's books instead of the amount recorded of $4,614. 2. Included on the bank statement is an automatic charge for Cullumber Service's monthly mortgage payment. The amount of the payment was $680, of which $430 is 1. Adeposit of collections on account from customers Was made, but the amount did not match what appeared on the bank statement. The correct amount of $4,164, shown on the bank statement, should have been used in Cuttumber's books instead of the amount recorded of $4.614. 2. Included on the bank statement is an automatic charge for Cullumber Service's monthly mortgage payment. The amount of the payment was $680, of which $430 is principal. Cullumber's bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month. 3. When retracing cheque payments to the journals duritg the bank reconciliation process, it was noticed that a $1.210 cheque, payable to Cullumber Service's landlord for the current month's rent. Was charged to Advertising Expense. 4. On the previous month's bank reconciliation, an outstanding cheque for $350 for a final paycheque of a part-time employeehad not yet been cashed. On the current month bank statement, the cheque has still not cleared the bank account. 5. Cullumber has an agreement with RBC to collect notes receivable and any outstanding interest on the notes. Cullumber's bookkeeper waits to record any collection untid the amounts are reported by RBC, because it is not predictable how much of the collection will be interest On the current bank statement, an entry appears for a deposit of $1,161 for a collection of a note with a principal amount of \$1,053. 6. Appearing on the bank reconcillation is a charge for an NSF cheque of $650 that had been deposited earlier in the month by Cullumber as a payment on sccount by a new customer. RBC had added an additional charge of $36 for processing the NSF cheoue Because the customer was new, Culliamber warned the customer the month by Cullumber as a payment on account by a new customer. RBC had added an additional charge of $36 for processing the NSF cheque. Because the customer was new, Cullumber warned the customer that any NSF charges would be added to the amount owing from thecustomer. 7. Acheque correctly issued in the amount of $448 as a payment on account to a supplier was incorrectly recorded in the books as $615. 8. Two cheques totalling $303, which were outstanding at the end of last month, cleared in the current month's bank statement. 9. Included in the bank statement are charges of $57 for the use of debit cards by Cullumber's customers. Cullumber waits for the information to be processed by the bank before recording them in the books. Prepare the necessary journal entries to correct Cullumber's accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) 6. 7. 8. 9
