Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Bell Company's bank statement showed a cash balance of $9,500 at November 30th. The Bell Company's cash account in its general ledger showed a

image text in transcribed
The Bell Company's bank statement showed a cash balance of $9,500 at November 30th. The Bell Company's cash account in its general ledger showed a $8,250 balance at November 30th. The following information was also available as of November 30th: A. The November 30th cash receipts, $4,150, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the November 30th bank statement. B. Bell Company's comparison of cancelled checks with its books shows three outstanding checks: No 8000 for $250, No 8001 for $500 and No 8002 for $750. C. When the November checks are compared with entries in the accounting records, it is found that Check No 7500 had been correctly drawn for $675 to pay for utilities but was erroneously entered in the accounting records as $975. D. The bank statement shows that the bank collected a note receivable and increased Bell's account for $2,975. Bell Company had not yet recorded this transaction before receiving the bank statement. E. The bank statement included an NSF check for $250 received from Gase, Inc. in payment of its account. It also included a $30 charge for check printing. Bell Company had not yet recorded these transactions befo bank statement. In addition, Bell Company noted that the bank statement included a deposit of $905 on November 12th that was erroneously posted to Bell's account. Bell communicated this error to the bank for correction in December Requirement (20 POINTS) - Prepare the November 30th bank reconciliation and the necessary adjusting entries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Quality Management System A Planning And Auditing Guide

Authors: Walter Willborn

1st Edition

083113013X, 978-0831130138

More Books

Students also viewed these Accounting questions

Question

6. Identify characteristics of whiteness.

Answered: 1 week ago

Question

e. What are notable achievements of the group?

Answered: 1 week ago