Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit

On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit memo for $149 is for an NSF check written by N. Carlton. Check no. 1924 for $336, payable to Garner Company (a creditor), was incorrectly recorded in the checkbook and journal as $200.

The balance of the Cash account as of August 31 is $1,509. Outstanding checks as of August 31 are: no. 1928, $119; no. 1929, $243. The accountant notes that the deposit of August 31 for $261 did not appear on the bank statement.

Instructions:

(a) Prepare a bank reconciliation as of August 31, assuming that the debit memos have not been recorded.

(b) Record the necessary journal entries.


Peabody National Bank

Kravsnik Company

416 Seneca Avenue

Kansas City, Missouri 64102

Account No.

152-6 55-217

Statement Date:

August 1-31

Summary: Balance Last Statement $1,360.00

Amount of Checks and Debits $2,698.00

Number of Checks 11

Amount of Deposits and Credits $2,651.00

Number of Deposits 7

Balance this Statement $1,313.00

Checks/Other Debits

Checks

Check Number

Date Posted

Amount

Check Number

Date Posted

Amount

1917

8-04

172.00

1923

8-09

621.00

1918

8-04

76.00

1924

8-17

336.00

1919

8-05

146.00

1925

8-17

14.00

1920

8-07

206.00

1926

8-23

533.00

1921

8-07

139.00

1927

8-28

94.00

1922

8-08

200.00

Other Debits

Description

Date Posted

Amount

DM NSF check

DM Service charge

8-31

8-31

149.00

12.00

Deposits/Other Credits

Deposits

Date Posted

Amount

Date posted

Amount

8-02

326.00

8-18

419.00

8-05

412.00

8-24

398.00

8-09

437.00

8-28

291.00

Please examine this statement carefully. Report any possible errors in 10 days.

Code Symbols

CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction

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_2

Step: 3

blur-text-image_3

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

Handbook Of Energy Audits

Authors: Albert Thumann, Terry Niehus, William J. Younger

9th Edition

1466561629, 978-1466561625

More Books

Students also viewed these Accounting questions