Question
The following information relates to the April 30, 2021 bank reconciliation for Domore Hotel. On April 30, the bank balance was $5,892. The bank statement
The following information relates to the April 30, 2021 bank reconciliation for Domore Hotel.
On April 30, the bank balance was $5,892. The bank statement indicated a deduction of $16 for all bank service charges. A customer deposited $1,190 directly into the bank account to settle an outstanding accounts receivable bill. Cheque #696 for $700 and cheque #703 for $490 have been recorded in the company ledger but did not appear on the bank statement. A customer paid an amount of $4,577 to Domore Hotel on April 30 but the deposit did not appear on the bank statement. The accounting clerk made an error and recorded a $200 cheque as $2,000. The cheque was written to pay an outstanding accounts payable account. Cheque #5249 for $190 was deducted from Domore Hotel's account by the bank. This cheque was not written by Domore Hotel and needs to be reversed by the bank. The bank included an NSF cheque in the amount of $290 relating to a customers payment. The NSF fee was $9. The general ledger cash account showed a balance of $6,794 on April 30.
Required a) Complete the bank reconciliation for Domore Hotel. b) Write the necessary journal entries to correct Domore Hotel's records.
Do not enter dollar signs or commas in the input boxes. Do not use negative signs.
a)
Domore Hotel Bank Reconciliation April 30, 2021 Cash balance per bank statement Answer 5892
Cash balance per books Answer
Add Add Outstanding deposit Answer 1190
EFT deposit Answer
Bank error Answer 0
Answer 0
Ledger error Answer
Answer
Deduct outstanding cheques Deduct Cheque #696 Answer 0
NSF cheque Answer
Cheque #703 Answer 0
Answer 0
NSF service charge Answer
Bank service charge Answer
Answer
Adjusted bank balance Answer 7082
Adjusted book balance Answer
Enter the relevant journal entries in the order of transaction appearance above. Remember, not all transactions will require journal entries.
b)
Date Account Title and Explanation Debit Credit 2021 Apr 30 Answer Bank Charges Expense
Answer 16
Answer Cash
Answer 16
Record bank charges Apr 30 Answer Cash
Answer 1190
Answer Accounts Receivable
Answer 1190
Record collection of accounts receivable Apr 30 Answer Accounts Payable
Answer 200
Answer Cash
Answer 200
To correct the record of accounts payable Apr 30 Answer
Answer
Answer
Answer
To record NSF cheque Apr 30 Answer
Answer
Answer
Answer
Record NSF Fee
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Business Accounting Volume 2
Authors: Frank Wood, Alan Sangster
6th Edition
0273039148, 9780273039143
