Question :
164. Following seven items (a) through (g) that would cause Xavier : 1256903
164. Following are seven items (a) through (g) that would cause Xavier Company’s book balance of cash to differ from its bank statement balance of cash.
a. A service charge imposed by the bank.
b. A check listed as outstanding on the previous period’s reconciliation and still outstanding at the end of this month.
c. A customer’s check returned by the bank is marked “Not Sufficient Funds. (NSF)”
d. A deposit that was mailed to the bank on the last day of the current month and is unrecorded on this month’s bank statement.
e. A check paid by the bank at its correct $190 amount was recorded in error in the company’s Check Register at $109.
f. An unrecorded credit memorandum indicated that bank had collected a note receivable for Xavier Company and deposited the proceeds in the company’s account.
g. A check was written in the current period that is not yet paid or returned by the bank.
Indicate where each item (a) through (g) would appear on Xavier Company’s bank reconciliation by placing its identifying letter in the parentheses in the proper section of the form below.
Bank Statement Cash Balance
Book Balance of Cash
Add:
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Add:
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Deduct:
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Deduct:
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Reconciled balance
Reconciled balance
165. Based on the following information, prepare the November bank reconciliation for the Avisa Company.
The following information is available for the Avisa Company for the month of November:
a. On November 30, after all transactions have been recorded, the balance in the company’s Cash account has a balance of $27,202.
b. The company’s bank statement shows a balance on November 30 of $29,279.
c. Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
d. A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee and credited the remainder of $770 to Avisa’s account.
e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
f. A deposit placed in the bank’s night depository on November 30 totaled $1,675 and did not appear on the bank statement.
g. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company’s books.
166. Based on the following information, prepare the general journal entries Avisa must make at November 30.
The following information is available for the Avisa Company for the month of November:
a. On November 30, after all transactions have been recorded, the balance in the company’s Cash account has a balance of $27,202.
b. The company’s bank statement shows a balance on November 30 of $29,279.
c. Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
d. A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee and credited the remainder of $770 to Avisa’s account.
e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
f. A deposit placed in the bank’s night depository on November 30 totaled $1,675 and did not appear on the bank statement.
g. Examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company’s books.
