The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:

2. Cash balance according to the company's records at July 31, $22,570.
4. Cash balance according to the bank statement at July 31, $23,870.
6. Checks outstanding, $4,580.
8. Deposit in transit, not recorded by bank, $3,680.
10. A check for $270 issued in payment of an account was erroneously recorded in the check register as $720.
12. Bank debit memo for service charges, $50.

Question Content Area

a. bank reconciliation, using the format shown in Exhibit 12.

Cash balance according to bank statement	$fill in the blank e2bb2ffe6ff5061_1
Add bank service chargeAdd deposit in transit, not recorded by bankAdd error in recording check $720 instead of $270Add outstanding checksDeduct deposit in transit, not recorded by bank	- Select -
Add error in recording checkDeduct bank service chargeDeduct deposit in transit, not recorded by bankDeduct error in recording checkDeduct outstanding checks	- Select -
Adjusted balance	$fill in the blank e2bb2ffe6ff5061_6
Cash balance according to company's records	$fill in the blank e2bb2ffe6ff5061_7
Add bank service chargeAdd deposit in transit, not recorded by bankAdd error in recording check $720 instead of $270Add outstanding checksDeduct deposit in transit, not recorded by bank	- Select -
Add outstanding checksDeduct bank service chargeDeduct deposit in transit, not recorded by bankDedcut error in recording checkDeduct outstanding checks	- Select -
Adjusted balance	$fill in the blank e2bb2ffe6ff5061_12

Question Content Area

b. If the balance sheet is prepared for Nakajima Co. on July 31, what amount should be reported for cash? $fill in the blank 486428fb0fe2023_1

c. Must a bank reconciliation always balance (reconcile)?

Yes/No

Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $14,620. The bank statement indicated a balance of $17,050 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

2. Checks outstanding totaled $6,140.
4. A deposit of $6,390, representing receipts of April 30, had been made too late to appear on the bank statement.
6. The bank collected $3,320 on a $3,150 note, including interest of $170.
8. A check for $440 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $400. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
10. A check drawn for $60 had been erroneously charged by the bank as $600.
12. Bank service charges for April amounted to $60.

Required:

Question Content Area

1. bank reconciliation.

Cash balance according to bank statement		$fill in the blank 8fb9820bdfaefc1_1
Add bank service chargesAdd deposit of April 30, not recorded by bankAdd error in recording checkAdd outstanding checksAdd note and interest collected by bank	$- Select -
Add bank error in charging check as $600 instead of $60Add error in recording checkAdd outstanding checksAdd note and interest collected by bankDeduct bank service charges	- Select -	- Select -
Deduct bank error in charging check as $600 instead of $60Deduct bank service chargesDeduct error in recording checkDeduct outstanding checksDeduct note and interst collected by bank		- Select -
Adjusted balance		$fill in the blank 8fb9820bdfaefc1_9
Cash balance according to company's records		$fill in the blank 8fb9820bdfaefc1_10
Add bank error in charging check as $600 instead of $60Add bank service chargesAdd deposit of April 30, not recorded by bankAdd error in recording checkAdd note and interest collected by bank		- Select -
Deduct bank error in charging check as $600 instead of $60Deduct deposit of April 30, not recorded by bankDeduct error in recording checkDeduct outstanding checksDeduct note and interst collected by bank	$- Select -
Deduct bank error in charging check as $600 instead of $60Deduct bank service chargesDeduct deposit of April 30, not recorded by bankDeduct outstanding checksDeduct note and interst collected by bank	- Select -	- Select -
Adjusted balance		$fill in the blank 8fb9820bdfaefc1_18

Question Content Area

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. April 30	Accounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable
	CashInterest PayableInterest ReceivableNotes PayableNotes Receivable
	CashInterest PayableInterest ReceivableInterest RevenueNotes Payable
b. April 30	Accounts Payable-Universal Supply Co.Accounts Receivable-Universal Supply Co.CashNotes PayablePetty Cash
	CashCash Short and OverMiscellaneous ExpenseNotes PayableNotes Receivable-Universal Supply Co.
	Accounts Payable-Universal Supply Co.Accounts Receivable-Universal Supply Co.CashNotes PayablePetty Cash

Question Content Area

3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? $fill in the blank ecec67019fd202c_1

2. 
   
4. 
   

Using the following information:

2. The bank statement balance is $3,586.
4. The cash account balance is $3,930.
6. Outstanding checks amounted to $635.
8. Deposits in transit are $832.
10. The bank service charge is $138.
12. A check for $38 for supplies was recorded as $29 in the ledger.

bank reconciliation for Miller Co. for August 31.

Cash balance according to bank statement		$fill in the blank 1
Add bank service chargeAdd deposits in transit not recorded by bankAdd error in recording checkDeduct bank service chargeDeduct deposits in transit not recorded by bank		- Select -
Add error in recording checkAdd outstanding checksDeduct bank service chargeDeduct error in recording checkDeduct outstanding checks		- Select -
Adjusted balance		$fill in the blank 6
Cash balance according to company's records		$fill in the blank 7
Add bank service chargeAdd outstanding checksDeduct bank service chargeDeduct deposits in transit not recorded by bankDeduct outstanding checks	$- Select -
Add error in recording checkAdd outstanding checksDeduct deposits in transit not recorded by bankDeduct error in recording checkDeduct outstanding checks	- Select -	- Select -
Adjusted balance		$fill in the blank 13

Using the following information:

2. The bank statement balance is $5,417.
4. The cash account balance is $5,813.
6. Outstanding checks amounted to $851.
8. Deposits in transit are $1,169.
10. The bank service charge is $69.
12. A check for $62 for supplies was recorded as $53 in the ledger.

bank reconciliation for Candace Co. for May 31.

Cash balance according to bank statement		$fill in the blank 1
Add bank service chargeAdd deposits in transit not recorded by bankAdd error in recordingDeduct deposits in transit not recorded by bankDeduct error in recording check		- Select -
Add error in recordingAdd outstanding checksDeduct bank service chargeDeduct error in recording checkDeduct outstanding checks		- Select -
Adjusted balance		$fill in the blank 6
Cash balance according to company's records		$fill in the blank 7
Add bank service chargeAdd outstanding checksDeduct bank service chargeDeduct deposits in transit not recorded by bankDeduct outstanding checks	$- Select -
Add error in recordingAdd outstanding checksDeduct deposits in transit not recorded by bankDeduct error in recording checkDeduct outstanding checks	- Select -	- Select -
Adjusted balance