Problem 8-4B in Chapter 8

Chapter 8 Cash Fraud, and internal Control 321 Problem 8.48 Preparing a bank recondition and recording adjustments P3 T The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash balance as of December 31. a. The December 31 cash balance according to the accounting records is $32.878.30, and the bank state ment cash balance for that date is $46,822.40. b. Check No. 1242 for $410.40, Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are out standing checks as of December 31. c. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in pay- ment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions e. The bank statement shows that the bank collected $18.980 cash on a note receivable for the company Severino did not record this transaction before receiving the statement. f. Severino's December 31 daily cash receipts of 59,583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement Required 1. Prepare the bank reconciliation for this company as of December 31. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the recon- ciled cash balance as of December 31. Check concled Q : Notes Recevable 3185000 Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstand Problem 8-5B ing at that time, No. 1771 for $781 and No. 1780 for $1.425.90. Check No. 1780 was still outstanding as Preparing aber of May 31. The following information is available for its May 31 reconciliation reconciliation and recording Bustments From the May 31 Bank Statement C UENTANCE 2175270 TOTAL DEPORTS AC 16.566 80 TOTAL CHECKS AND DERTS 13.094 BD PREVIOUS BALANCE 18.290.70 DEPOSITS AND CREDITS Date CHECKS AND DEBITS No Amount 2.438.00 Am May 4 3.49000