Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1 - Bank Reconciliation (Weight of Score: 20%) On April 30, 2019, bank balance of Wonderful Company according to the company's record was $

image text in transcribed
Problem 1 - Bank Reconciliation (Weight of Score: 20%) On April 30, 2019, bank balance of Wonderful Company according to the company's record was $ 4,864.50, while according to the record of Wealthy Bank, it was only $ 4,620.25. Below is the data that occurred in April 2019 as the basis of comparison between company's record and bank's record: 1. Deposit that had not been recorded by bank was $2,450 2. Total of outstanding checks on April 30, 2019 was $1,807.05 3. Notes Receivable with amount of $1,200 had been collected by bank for Wonderful Company with the interest of $20 and bank charged $10 for the administration expense of this transaction. 4. On April 30, 2019 a staff of Finance Department of Wonderful Company went to the bank to cash a check with amount of $687.30 which was received from a customer, William Smith, but the bank rejected the check due to insufficient fund in William Smith's account. 5. Payment of bank administration expense $15 had not been recorded in the journal of Wonderful Company. 6. Wonderful Company issued a check No. 1280 for payment to a supplier, Peter Robinson, with amount of $ 343. Wonderful Company recorded the transaction incorrectly. It was recorded in the journal for $ 334. 7. Check withdrawal of $229 but it was recorded by Wealthy Bank as $329. Instructions: 1) Prepare Bank Reconciliation for Wonderful Company based on the data above. 2) Prepare the Journal Entries of the bank reconciliation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions