P7-4A Only

Problems: Set A 363 Instructions (a) Prepare the bank reconciliation as of July 31. (a) Adjusted cush bal. $7,024.00 (b) Prepare the necessary adjusting entries at July 31. P7-4A The bank portion of the bank reconciliation for Bogalusa Company at October 31, Prepare a bank reconciliation 2017, is shown below. and adjusting entries from detailed data BOGALUSA COMPANY Bank Reconciliation (LO 3). AP October 31, 2017 Cash balance per bank $12,367.90 Add: Deposits in transit 1,530.20 13,898.10 Less: Outstanding checks Check Number Check Amount 2451 $1,260.40 2470 684.20 2471 844.50 2472 426.80 2474 1,050.00 4,265.90 Adjusted cash balance per bank $ 9,632.20 The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits. Bank Statement Date 11-1 11-2 11-5 11-4 11-8 11-10 11-15 11-18 11-27 11-30 11-29 Checky Number 2470 2471 2474 2475 2476 2477 2479 2480 2481 2483 2486 Total Amount $ 684.20 844.50 1,050.00 1,640.70 2,830.00 600.00 1,750.00 1,330.00 695.40 575.50 940.00 $12,940.30 Date 11-1 11-4 11-8 11-13 11-18 11-21 11-25 11-28 11-30 Total Deposits Amount $ 1,530.20 1,211.60 990.10 2,375.00 1,472.70 2,945.00 2,567.30 1,650.00 1,186.00 $16,127.90 The cash records per books for November showed the following Cash Payments Journal Date Number Amount Date Number 11-1 2475 $1,640.70 11-20 2483 11-2 2476 2,830.00 11-22 2484 11-2 2477 600.00 11-23 2485 11-4 2478 538.20 11-24 2486 11-8 2479 1,705.00 11-29 2487 11-10 2480 1,330.00 11-30 2488 11-15 2481 695.40 Total 11-18 2482 612.00 Amount S 575.50 829.50 974.80 940.00 398.00 800.00 $14,469.10 $ Cash Receipts Journal Date Amount 11-3 $ 1,211.60 11-7 990.10 11-12 2,575.00 11-17 1,472.70 11-20 2,954.00 11-24 2,567.30 11-27 1,650.00 11-29 1,186.00 11-30 1,304.00 Total $15,910.70 364 7 Fraud, Internal Control, and Cash The bank statement contained two bank memoranda: 1. Acredit of $2,242 for the collection for Bogalusa Company of an electronic funds transfer. 2. A debit for the printing of additional company checks $85. At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Bogalusa Com- pany made two errors. Instructions (a) Adjusted cash bal. $13,176.80 (a) Using the steps in the reconciliation procedure described on pages 355-356, prepare a bank reconciliation at November 30, 2017. (b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts should be made to Accounts Receivable.) Prepare a bank reconciliation and adjusting entries. (LO 3), AP P7-5A Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fer- tilizer for local farmers. On May 31, 2017, the company's Cash account per its general ledger showed a balatice of S6,738.90. The bank statement from Emporia State Bank on that date showed the following balance. Checks and Debits XXX EMPORIA STATE BANK Deposits and Credits XXX Daily Balance 5-31 6,968.00 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statetrient included a debit memo of $40 for the printing of additional company checks. 2. Cash sales of $883.15 on May 12 were deposited in the bank. The cash receipts jour- nal entry and the deposit slip were incorrectly made for $933.15. The hank credited Timmins Company for the correct amount. 3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15. 4. On May 18, the conipany issued check No. 1181 for $685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658. 5. $2,690 was collected by the bank for Timmins Company on May 31 through electronic funds transfer 6. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $360 that was incorrectly charged to Timmins Company by the bank. 7. On May 31, the bank statement showed an NSF charge of 5380 for a check issued by Sara Ballard, a customer, to Timmins Company on account, Instructions (a) Adjusted cash bal. 58,931.90 (a) Prepare the bank reconciliation at May 31, 2017. (b) Prepare the necessary adjusting entries for Timmins Company at May 31, 2017. Prepare a comprehensive bank reconciliation with theft and internal control deficiencies. (10 1,2,3). P7-6A Daisey Company is a very profitable small business. It has not, however, given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book- keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2017, was $18,380. Outstand- ing checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226,80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25. This memorandum has not been recorded by Daisey. The company's ledger showed one Cash account with a balance of $21,877.72. The balance included undeposited cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash