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Part 1a. Prepare bank reconciliation. (Data is a right.) HAPPY COMPANY Bank Reconciliation 4/30/XXX1 Bank statement balance Add: $22,000 27,840 8,000 Deduct: 25,000 24,000 Information
Part 1a. Prepare bank reconciliation. (Data is a right.) HAPPY COMPANY Bank Reconciliation 4/30/XXX1 Bank statement balance Add: $22,000 27,840 8,000 Deduct: 25,000 24,000 Information Needed for Bank Reconciliation Cash balance in general ledger on company's books Bank statement balance | Outstanding checks: No.8 Error on Check No. 2 for rent: Amount entered in books as debit to Prepaid Insurance Actual amount Error on Check No. 4 for salaries: Amount entered by bank Actual amount Bank collected accounts receivable for Happy Total collected by bank Collection fee charged by bank NSF check from client: Amount of NSF check NSF fee charged by bank | Bank service charge Deposit not yet credited by bank (April 20) T 100 1.000 Adjusted bank balance 2,000 Book balance Add: 1.000 Deduct: 201 ,000 5 Adjusted book balance Note: Three blanks are given for each section of the bank reconciliation; however, for some of the sections, you may only have one or two entries. Part 1b: Prepare adjusting entries for the bank reconciliation. YOU'VE DONE IT! General Journal Date Debit a. Adjusting entry for collection by bank. Credit b. Adjusting entry for error. Use the following account titles for the bank reconcilation adjusting entries. Accounts Receivable Cash in Bank Miscellaneous Expense Prepaid Rent c. Adjusting entry for NSF check. d. Adjusting entry for bank charge(s)
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