Part Four Instructions In this part of the practice set, the student will prepare a Bank Reconciliation for the month of January Start by using the ending balance in your cash account for the cash for your books and the ending balance on the bank statement for the bank balance. Requirements 1. Correct Errors: Correct any errors that you made on the journal entries. Both the debits and the credits must equal each other. 2. Bank Reconciliation: Using the cash balance per books and the bank statement, prepare a bank reconciliation. 3. Record Bank Reconciliation Adjustments: After you have prepared the bank reconciliation you must make any adjusting journal entries to your cash account by entering them in the general journal of the practice set so that the general ledger cash account agrees with the bank reconciliation 4. Assume that any errors are made by the bank. 5. After preparing the bank reconciliation answer the questions in Blackboard and then staple the bank reconciliation to the back cover. Unadjusted TB Debit Credit 17,416.67 Adjusted TB Debit Credit 17,416.67 Post-Closing TB Debit Credit 17,416.67 7,395.00 595.00 365.00 200.00 3,200.00 1,800.00 10,000.00 7,395.00 595.00 43.00 150.00 2,400.00 1,500.00 10,000.00 7,395.00 595.00 43.00 150.00 2,400.00 1,500.00 10,000.00 166.67 166.67 13,000.00 13,000.00 13,000.00 200.00 200.00 900.00 900.00 900.00 25.00 25.00 Sweaty Bands, Inc. Account Names Cash Account Receivable Inventory - Orange Headbands Inventory - Blue Headbands Office Supplies Store Supplies Prepaid Rent Prepaid Insurance Store & Office Equipment Accumulated Depreciation - Store & Office Equipment Furniture & Fixtures Accumulated Depreciation - Furniture & Fixtures Computer Equipment Accumulated Depreciation - Computer equipment Account Payable Note Payable - Wells Fargo Bank Note Payable - Store & Office Supply Wages Payable Interest Payable Sales Tax Payable Utility Payable Common Stock Retained Earnings Dividends Sales Cost of goods sold Legal expense Store Supplies expense Office Supplies expense Insurance expense Wages expense Delivery expense Advertising and Promotion expense 7,000.00 9,166.67 7,000.00 9,166.67 1,550.00 35.00 7,000.00 9,166.67 1,550.00 35.00 277.23 25,000.00 277.23 25,000.00 277.23 25,000.00 9,979.10 100.00 100.00 30,990.00 30,990.00 15,560.00 350.00 15,560.00 350.00 50.00 322.00 300.00 1,550.00 375.00 850.00 375.00 850.00 Acts DuteDbDate Cred Date Doba Dute Code Date D ute 2 $25.000 22 2 55.95 - S 100 . 016 $ 5500 $ 2.500 $ 100 SS L SSD 15. 2 2008 $ 350 More Office Equipment m ed Depreciation for wted Depreciation Store & Office Equi HS 167 Computer met Prable Note Patie Wet Fargo Bank S 167 Bal. multed Depreciation - Computer equipe A 31-Jan $ 25 20- 200 22-Jan $ 16,000 23- 3400 SS 16- 14.a 200 5.500 $ Peale Interest Payable Sales Tax Payable supply $10.000 a $9.167 Dividends 100 31 1 - 15- 600 $ 5.500 Cost of goods sold 4 .000 $ 2750 15- 254 255 2150 SO Unadjusted TB Debit Credit 17,416.67 Adjusted TB Debit Credit 17,416.67 Post-Closing TB Debit Credit 17,416.67 Sweaty Bands, Inc. Account Names Cash Account Receivable Inventory - Orange Headbands Inventory - Blue Headbands Office Supplies Store Supplies Prepaid Rent Prepaid Insurance Store & Office Equipment Accumulated Depreciation - Store & Office Equipment Furniture & Fixtures Accumulated Depreciation - Furniture & Fixtures Computer Equipment Accumulated Depreciation - Computer equipment Account Payable Note Payable - Wells Fargo Bank Note Payable - Store & Office Supply 7,395.00 595.00 365.00 200.00 3,200.00 1,800.00 10,000.00 7,395.00 595.00 43.00 150.00 2,400.00 1,500.00 10,000.00 7,395.00 595.00 43.00 150.00 2,400.00 1,500.00 10,000.00 166.67 166.67 13,000.00 13,000.00 13,000.00 200.00 200.00 900.00 900.00 900.00 25.00 25.00 7,000.00 9,166.67 7,000.00 9,166.67 7,000.00 9,166.67 1,550.00 35.00 1,550.00 35.00 277.23 25,000.00 277.23 25,000.00 277.23 25,000.00 9,979.10 100.00 100.00 30,990.00 30,990.00 Wages Payable Interest Payable Sales Tax Payable Utility Payable Common Stock Retained Earnings Dividends Sales Cost of goods sold Legal expense Store Supplies expense Office Supplies expense Insurance expense Wages expense Delivery expense Advertising and Promotion expense 15,560.00 350.00 15,560.00 350.00 50.00 322.00 300.00 1,550.00 375.00 850.00 375.00 850.00 Sweaty Bands, Inc. T Accounts Date Debit Date Credit Cash Date Debit Date Credit Accounts Receivable 13-Jan $ 8,000 22-Jan $ 5,954 15-Jan $ 5,954 23-Jan $ 8,000 2-Jan $ 25,000 5-Jan $ 7,000 22-Jan $ 5,954 23-Jan $ 8,000 23-Jan $ 11,496 25-Jan $ 4,581 30-Jan $ 2,782 Date Debit Date Credit Inventory - Orange Headbands 8-Jan $ 11,000 13-Jan $ 2,500 14-Jan $ 5,500 15-Jan $ 1,500 23-Jan 100.00 23-Jan 2,655.00 25-Jan 2,000.00 30-Jan 350.00 Date Debit Date Credit Inventory - Blue Headbands 8-Jan $ 5,000 13-Jan $ 1,500 2 2-Jan $ 2,900 15-Jan $ 1,250 23-Jan 750.00 23-Jan 2,655.00 25-Jan 150.00 30 Jan 1,000.00 3-Jan $ 3,200 3-Jan $ 1,800 5-Jan $ 13,000 6-Jan $ 900 6-Jan $ 300 13-Jan $ 350 20-Jan $ 200 22-Jan $ 16,000 23-Jan $ 375 23-Jan $ 65 23-Jan $ 8,400 30-Jan $ 883 30-Jan $ 1,822 31-Jan $ 100 Bal. Bal Bal. Bal $ 17,417 Office Supplies 6-Jan $ 300 23-Jan $ 65 31-Jan Store Supplies 14-Jan $ 200 31-Jan $ 7,395 Prepaid Rent $ 3,200 31-Jan $ 595 Prepaid Insurance $ 1,800 31-Jan $ 3-Jan 3-Jan 322.00 50.00 $ 800 300 Bal. $ 43 Store & Office Equipment 3-Jan $10,000 u Bal. $ 150 lated Depreciation - Store & Office Equi 31-Jan $ 167 Bal. $ 2,400 Furniture & Fixtures S-Jan $ 13,000 Bal. $ 1,500 umulated Depreciation - Furniture & Fixtu 31-Jan $ 200 Bal. $ 10,000 Computer Equipment 6-Jan $ 900 Bal. $ 200 Note Payable - Wells Fargo Bank 5-Jan $ 7,000 Bal. $ 167 Bal. $ 13,000 imulated Depreciation - Computer equipe Account Payable 31-Jan $ 25 20-Jan $ 200 8 -Jan $ 11,000 22-Jan $ 16,000 8-Jan $ 5,000 23-Jan $ 8,400 14-Jan $ 200 14-Jan $ 5,500 22-Jan $ 2,900 S . 7,000 Bal. $ 900 Note Payable - Store & Office Supply 30-Jan $ 833 3 -Jan $10,000 Bal. $ 25 Wages Payable 31-Jan $ 1,550 Bal. Interest Payable 31-Jan $ 35 Bal. $ Sales Tax Payable 15-Jan $ 23-Jan $ 25-Jan $ $ 1,822 30-Jan $ 454 876 281 212 30-Jan $ 9,167 $ 35 $ . Bal. Utility Payable 28-Jan Bal. $ 1,550 Common Stock 2-Jan $ 25,000 Bal. Retained Earnings Bal. Dividends 100 $ 277 31-Jan $ Bal $ 277 $ 25,000 S . Sales Bal. Legal expense 350 Bal. $ 100 Store Supplies expense 31-Jan $ 50 13-Jan $ 13-Jan $ 8,000 15-Jan $ 5,500 23-Jan $10,620 25-Jan $ 4,300 30-Jan $ 2,570 Bal. Cost of goods sold 13-Jan $ 4,000 15-Jan $ 2,750 23-Jan $ 5,310 25-Jan $ 2,150 30-Jan $ 1,350 Bal. $ 30,990 Office Supplies expense 31-Jan $ 322 Bal. $ 15,560 Insurance expense 31-Jan $ 300 Bal. $ 350 Wages expense 31-Jan $ 1,550 Bal. $ 50 Delivery expense 23-Jan $ 375 Bal. $ 322 Advertising and Promotion expense 23-Jan $ 850 Bal. $ 300 Utility expense 28-Jan $ 277 Bal. $ 1,550 Rent expense 31-Jan $ 800 Bal. $ 375 Depreciation expense 31-Jan $ 200 31-Jan $ 167 31-Jan $ 25 $ 277 $ 392 Bank Service fee $ 850 Interest expense 30-Jan $ 50 31-Jan $ 35 Bal. $ 85 Bal. $