The following information is available for Hernandez Company as of November 30, 20xx: a. Cash on the
Question:
The following information is available for Hernandez Company as of November 30, 20xx:
a. Cash on the books as of November 30 amounted to 113,675.28. Cash on the bank statement for the same date was \(141,717.08\).
b. A deposit of \(14,249.84\), representing cash receipts of November 30 , did not appear on the bank statement.
c. Outstanding cheques totaled \(7,293.64\)
d. A cheque for \(2,420.00\) returned with the statement was recorded in the cash payments journal as \(2,024.00\). The cheque was for advertising.
e. The bank service charge for November amounted to 26.00 .
f. The bank collected \(36,400.00\) for Hernandez Company on a note. The face value of the note was \(36,000.00\).
g. An NSF cheque for \(1,140.00\) from a customer, Emma Matthews, was returned with the statement.
h. The bank mistakenly deducted a cheque for 800.00 drawn by Mota Corporation.
i. The bank reported a credit of 960.00 for interest on the average balance.
1. Prepare a bank reconciliation for Hernandez Company as of November 30, 20xx.
2. Prepare the journal entries necessary from the reconciliation.
3. State the amount of cash that should appear on the balance sheet as of November 30.
Step by Step Answer:
Financial Accounting A Global Approach
ISBN: 9780395839867
1st Edition
Authors: Sidney J. Gray, Belverd E. Needles