The following is a list of items that could cause the book balance for cash of Marin Services to differ from Marins bank statement balance from RBC (Royal Bank) Identify if the item should be included as a reconciling item in Marins bank reconciliation Indicate if a journal entry will be needed to correct any of the account for Marin 1 A deposit of collections on account from customers was made, but the amount did not match what appeared on the bank statement The correct amount of $4,540, shown on the bank statement should have been used in Marins books instead of the amount recorded of $4,629 2 Included on the bank statement is an automatic charge for Marin Services monthly mortgage payment The amount of the payment was $790 of which $485 is principal Marins bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month 3 When retracing cheque payments to the journals during the bank reconciliation process, it was noticed that a $1,720 cheque, payable to Marin Services landlord for the current months rent, was charged to Advertising Expense 4 On the previous months bank reconciliation, an outstanding cheque for $450 for a final pay cheque of a part time employee had not yet been cashed On the current month bank statement, the cheque has still not cleared the bank account 5 Marin has an agreement with RBC to collect notes receivable and any outstanding interest on the notes Marins bookkeeper waits to record any collection until the amounts are reported by RBC, because it is not predictable how much of the collection will be interest On the current bank statement, an entry appears for a deposit of $1,080 for a collection of a note with a principal amount of $1,020 6 Appearing on the bank reconciliation is a charge for an NSF cheque of $670 which had been deposited earlier in the month by Marin as a payment on account by a new customer RBC had added an additional charge of $33 for processing the NSF cheque Because the customer was new, Marin warned the customer that any NSF charges would be added to the amount owing from the customer 7 A cheque correctly issued in the amount of $490 as a payment on account to a supplier was incorrectly recorded in the books as $590 8 Two cheques totalling $314, which were outstanding at the end of the last month, cleared in the current months bank statement SHOW LIST OF ACCOUNTS LINK TO TEXT Prepare the necessary journal entries to correct Marins accounts (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) No Account Titles and Explanation Debit Credit 1 2 3 4 5 6 7 8 9

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Posted on Sep 17, 2024

The following is a list of items that could cause the book balance for cash of Marin Services to differ from Marins bank statement balance

The following is a list of items that could cause the book balance for cash of Marin Services to differ from Marins bank statement balance from RBC (Royal Bank).

Identify if the item should be included as a reconciling item in Marins bank reconciliation. Indicate if a journal entry will be needed to correct any of the account for Marin.

		?
1.	A deposit of collections on account from customers was made, but the amount did not match what appeared on the bank statement. The correct amount of $4,540, shown on the bank statement should have been used in Marins books instead of the amount recorded of $4,629.
2.	Included on the bank statement is an automatic charge for Marin Services monthly mortgage payment. The amount of the payment was $790 of which $485 is principal. Marins bookkeeper always waits for the transaction to appear on the bank statement before recording it because the amount varies from month to month.
3.	When retracing cheque payments to the journals during the bank reconciliation process, it was noticed that a $1,720 cheque, payable to Marin Services landlord for the current months rent, was charged to Advertising Expense.
4.	On the previous months bank reconciliation, an outstanding cheque for $450 for a final pay cheque of a part-time employee had not yet been cashed. On the current month bank statement, the cheque has still not cleared the bank account.
5.	Marin has an agreement with RBC to collect notes receivable and any outstanding interest on the notes. Marins bookkeeper waits to record any collection until the amounts are reported by RBC, because it is not predictable how much of the collection will be interest. On the current bank statement, an entry appears for a deposit of $1,080 for a collection of a note with a principal amount of $1,020.
6.	Appearing on the bank reconciliation is a charge for an NSF cheque of $670 which had been deposited earlier in the month by Marin as a payment on account by a new customer. RBC had added an additional charge of $33 for processing the NSF cheque. Because the customer was new, Marin warned the customer that any NSF charges would be added to the amount owing from the customer.
7.	A cheque correctly issued in the amount of $490 as a payment on account to a supplier was incorrectly recorded in the books as $590.
8.	Two cheques totalling $314, which were outstanding at the end of the last month, cleared in the current months bank statement.

SHOW LIST OF ACCOUNTS
LINK TO TEXT

Prepare the necessary journal entries to correct Marins accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)