167. Brown Company’s bank statement for September 30 showed a cash balance of $1,350. The company’s Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.
a. A customer’s check for $100 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company’s account a $25 processing fee.
b. The September 30 cash receipts, $1,250, were placed in the bank’s night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
c. A $15 debit memorandum for checks printed by the bank was included with the canceled checks.
d. Outstanding checks amounted to $1,145.
e. A customer’s note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account.
f. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc.
(a) Prepare a bank reconciliation as of September 30.
(b) Prepare any necessary adjusting journal entries necessary as a result of the bank reconciliation.
168. The following information is available for the Edwards Company for its March 31 bank reconciliation:
From the March 31 bank statement:
Previous Balance
Total Checks and Debits
Total Deposits and Credits
Current Balance
$10,908
$7,805
$11,905
$15,008
Checks and Debits
Deposits and Credits
Daily Balance
Date
No.
Amount
Date
Amount
Date
Amount
03/03
2874
1,210
03/02
4,340
03/01
10,908
03/11
2906
3,850
03/27
7,270
03/02
15,248
03/15
2905
170
03/31
295
IN
03/03
14,038
03/25
2910
725
03/11
10,188
03/29
2908
1,350
03/15
10,018
03/30
500
NSF
03/25
9,293
03/27
16,563
03/29
15,213
03/30
14,713
03/31
15,008
NSF: A check from a customer, Cook Co. in payment of their account.
IN: Interest earned on the account.
From the Edwards Company’s accounting records:
Cash Receipts Deposited
Cash Disbursements
Date
Cash Debit
Check No.
Cash Credit
March
7
4,340
2905
170
27
7,270
2906
3,850
31
2,090
2907
460
13,700
2908
1,350
2910
725
2911
340
6,895
Cash
Acct. No. 101
Date
Explanation
PR
Debit
Credit
February
28
Balance
9,698
March
31
Total receipts
R4
13,700
23,398
31
Total disbursements
D5
6,895
16,503
a. Based on the above information, prepare a bank reconciliation for the Edwards Company.
b. Prepare the necessary general journal entries to adjust cash to the reconciled balance.
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