The cash account for Samson Supplies Co. at April 30, 2014, indicated a balance of $18,885. The bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement and the accompanying canceled cheques and memos with the records revealed the following reconciling items: a) Cheques outstanding totaled $7,840 b) A deposit of $3,580, representing receipts on April 30, had been made too late to appear on the bank statement. c) The bank collected $3,780 on a note left for collection. The face of the note was $3,600. d) A cheque for $770 returned with the statement had been incorrectly recorded by Samson Supplies Co. as $700. The cheque was for the payment of an obligation to Copelin Co. for a purchase on account. e) A cheque drawn for $330 had been erroneously charged by the bank as $3,300. f) Bank service charges for April amounted to $110. Required: a) Prepare a bank reconciliation statement for Samson Supplies Co., at April 30. b) Journalize the necessary entries. Assume that the accounts have not been closed. c) State the amount of cash that should be included in the balance sheet at April 30. Question 2 The cash transactions and cash balances of Banner Inc., for July, were as follows: i) The ledger account for Cash showed a balance at July 31 of $125,568 ii) The July bank statement showed a closing balance of $114,828. iii) The cash received on July 31 amounted to $16,000. It was left at the bank in the night depository chute after banking hours on July 31 and therefore was not recorded by the bank on the July statement. iv) Also included with the July bank statement was a debit memorandum from the bank for $50 representing service charges for July. v) A credit memorandum enclosed with the bank statement indicated that a non-interest bearing note receivable for $4,000 from Rene Manes, left with the bank for collection, had been collected and the proceeds credited to the account of Banner. Inc vi) Comparison of the paid cheques returned by the bank with the entries in the accounting records revealed that cheque no. 821 for $519, issued July 15 in payment for office equipment, had been erroneously entered in Banners records as $915. vii) Examination of the paid cheques also revealed that three cheques, all issued in July, had not yet been paid by the bank: no.811 for $314; no.814 for $625; no. 823 for $175. viii) Included with the July statement was a $200 cheque drawn by Howard Williams, a customer of Banner. Inc., This cheque was marked NSF. It had been included in the deposit of July 27 but had been charged back against the companys account on July 31. Required: a) Prepare a bank reconciliation statement for Banner. Inc., at July 31. b) Prepare the journal entries necessary to bring the companys book balance of cash in conformity with the reconciled cash balance as of July 31. Assume that the accounts have not been closed. c) State the amount of cash that should be included in the balance sheet at July 31. d) Explain why the balance as per the bank statement is often larger than the balance shown in its accounting records. Question 3 The following information is available for Andersen Company for the month ending June 30, 2013. Balance per the bank statement is $10,241.43. Balance per books is $9,745.06. Check #506 for $1,948.52 and check #510 for $1,800.25 were not returned with the June 30 bank statement. A deposit in transit of $5,113.40 had not been received by the bank when the bank statement was generated. A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to Andersen Company on June 13. A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue of $75 on June 20. The bank statement indicated service charges of $35. Required: Prepare a bank reconciliation for Andersen Company for June 30, 2013 The following information is needed to reconcile the cash balance for Woods Paper Products. A deposit of $5,794.62 is in transit. Outstanding checks total $1,533.25. The book balance is $5,695.62. The bookkeeper recorded a $1,524.00 check as $15,240 in payment of the current month's rent. The bank balance at February 28, 2008 was $16,500.25. A deposit of $300 was credited by the bank for $3,000. A customer's check for $1,280 was returned for nonsufficient funds. The bank service charge is $70. Required: Prepare companys adjusted cash book and bank reconciliation for February 2013. Question 5 The cash record of Silver Maple Art Gallery for April, 2014 follows: Cash Receipts (CR) Cash Payments (CP) Date Cash Debit Cheque # Cash Credit April 2 $ 4,174 3113 $891 8 91 April 8 501 3114 1 47 April 10 559 3115 1,930 April 16 2,187 3116 664 April 22 1,854 3117 1,472 April 29 1,060 3118 1,000 April 30 337 3119 632 Total $10,672 31 20 1,675 3121 100 31 22 2,413 Total $10,924 The Cash account of Silver Maple Art Gallery shows the following at April 30, 2014 Cash Date Item Jrnl. Ref. Debit Credit Balance April 1 Balance 13,911 April 30 CR.6 10,672 24,583 April 30 CR.11 10,924 13,659 On April 30, 2014, Silver Maple Art Gallery received the following bank statement: Bank Statement for April 2014 Beginning Balance $13,911 Deposits & Other Credits: April 1 $ 300 EFT April 4 4,174 April 9 501 April 12 559 April 17 2,187 April 22 1,300 BC April 23 1,854 10,875 Checks & Other Debits: April 7 (cheque no. 3113) $ 891 April 13 (cheque no. 3115) 1,390 April 14 900 US April 15 (cheque no. 3114) 147 April 18 (cheque no. 3116) 664 April 21 200 EFT April 26 (cheque no. 3117) 1,472 April 30 (cheque no. 3118) 1,000 April 30 20 SC (6,684) Ending Balance $18,102 Explanations: EFT electronic funds transfer; BC bank collections; US unauthorized signature; SC service charge. Additional data for the bank reconciliation: a. The EFT deposit was a receipt of rent. The EFT debit was an insurance payment. b. The unauthorized-signature check was received from a customer. c. The $1,300 bank collection was for a note receivable d. The correct amount of cheque number 3115 is $1,390. (Silver Maple Art Gallerys accountant mistakenly recorded the cheque for $1,930.) Required: i) Prepare Silver Maple Art Gallerys bank reconciliation at April 30, 2014. ii) Prepare the journal entries to adjust the accounts on April 30. Assume that the accounts have not been closed. iii) State the amount of cash that should be included in the balance sheet at April 30.