Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2020, after all posting was completed

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Kesler Co. deposits all receipts intact on the day received and makes all payments by cheque. On July 31, 2020, after all posting was completed its Cash account showed a $10,901 debit balance. However, Kesler's July 31 bank statement showed only $10,023 on deposit in the bank on that day along with the following information a. Outstanding cheques, $2741 b. Included with the July cancelled cheques returned by the bank was a $58 debit memo for bank services c. Cheque #919, returned with the cancelled cheques, was correctly drawn for $125 in payment of the utility bill and was paid by the bank on July 15. However, it had been recorded with a debit to Utilities Expense and a credit to Cash as though it were for $215 d. The July 31 cash receipts $3,651. were placed in the bank's night depository after banking hours on that date and were unrecorded by the bank at the time the July bank statement was prepared. Required: o. Prepare a bank reconciliation for kesler Coat July 31 KESLER CO. Bank Reconciliation July 31.2020 Company's Books Book balance of cash Add Bank Statement Bank statement balance Add Bank Statement July 31, 2020 Company's Books Book balance of cash Add: Bank statement balance Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance b. Give the joumal entries that Kester Co. should make as a result of having prepared the bank reconciliation in pa View transaction lit b. Give the journal entries that Kesler Co. should make as a result of having prepared the bank reconciliation in p- View transaction list Journal entry worksheet 1 2 > Record to correct utilities error Note: Enter debits before credits Date General Journal Debit Credit Jul 31 Record entry Cleos entry View General journal Analysis Component Identity whether profit, assets, liabilities, and equity would be over- or understated if the journal entries in part (b) were not recorded (If there is no effect on any of the elements, select "No effect") Profit Assets Liabilities Equity

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

Recommended Textbook for

Financial Accounting

Authors: Robert F. Meigs, Jan R. Williams, Mark S. Bettner, Susan F. Haka, Sue Haka

11th Edition

0072516682, 978-0072516685

More Books

Students also viewed these Accounting questions