Daisy Company received a bank statement for February, as follows: 1 2 3 4 3 4...

Transcribed Image Text:

Daisy Company received a bank statement for February, as follows: 1 2 3 4 3 4 5 Date Feb. 1 6 7 9 14 16 21 23 28 8 Checks $ 2,700.33 3,484.81 The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge (Miscellaneous expense). The company's accounting records contained the following information: Cash balance on February 28 from the books: $2,610.42 6.00 SC 274.09 4,133.60 69.69 11 SC = Service Charge; NSF - Check Returned; CM = Credit Memo; DM = Debit Memo 12 NSF Cash Disbursements Ck No. 155 156 157 158 159 160 DATE 1 Balance from bank statement 2 Deduct: Prepare the journal entries that Daisy should record on February 28 as a result of the reconciliation. Additional Instruction 2,742.63 Dec. 31 Dec. 31 Dec. 31 Deposits Note: All receipts are verified and correct. 7 Adjusted cash balance $8,642.61 460.00 CM $2,700.33 Feb. 7 3,484.81 21 274.09 589.02 4,133.60 Cash 3,385.49 9 Balance from company records 10 Add: Required: 1. Prepare a bank reconciliation on February 28, 2016, for Daisy. 2. Prepare the journal entries that Daisy should record as a result of the reconciliation. Balance $ 4,524.80 $ 6,344.38 Cash Receipts $8,624.61 3,385.49 GENERAL JOURNAL ACCOUNT TITLE Bank Reconciliation February 28, 2016 POST. REF. DEBIT 320.00 129.25 PAGE 6 CREDIT 2,055.25 449.25 ASSETS 111 Cash 121 Accounts Receivable 125 Notes Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation 198 Accumulated Depreciation General Ledger LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Amount Descriptions Corporation Amount Descriptions Outstanding ck158 Outstanding ck160 REVENUE 411 Sales Revenue 431 Interest Income EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense Adjusted cash balance Bank service charge (Miscellaneous expense) Error in deposit Note collected by bank, net NSF check Daisy Company received a bank statement for February, as follows: 1 2 3 4 3 4 5 Date Feb. 1 6 7 9 14 16 21 23 28 8 Checks $ 2,700.33 3,484.81 The receipt of $460 on February 14 was for a $445 note collected by the bank, plus $20 current interest, minus a $5 service charge (Miscellaneous expense). The company's accounting records contained the following information: Cash balance on February 28 from the books: $2,610.42 6.00 SC 274.09 4,133.60 69.69 11 SC = Service Charge; NSF - Check Returned; CM = Credit Memo; DM = Debit Memo 12 NSF Cash Disbursements Ck No. 155 156 157 158 159 160 DATE 1 Balance from bank statement 2 Deduct: Prepare the journal entries that Daisy should record on February 28 as a result of the reconciliation. Additional Instruction 2,742.63 Dec. 31 Dec. 31 Dec. 31 Deposits Note: All receipts are verified and correct. 7 Adjusted cash balance $8,642.61 460.00 CM $2,700.33 Feb. 7 3,484.81 21 274.09 589.02 4,133.60 Cash 3,385.49 9 Balance from company records 10 Add: Required: 1. Prepare a bank reconciliation on February 28, 2016, for Daisy. 2. Prepare the journal entries that Daisy should record as a result of the reconciliation. Balance $ 4,524.80 $ 6,344.38 Cash Receipts $8,624.61 3,385.49 GENERAL JOURNAL ACCOUNT TITLE Bank Reconciliation February 28, 2016 POST. REF. DEBIT 320.00 129.25 PAGE 6 CREDIT 2,055.25 449.25 ASSETS 111 Cash 121 Accounts Receivable 125 Notes Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation 198 Accumulated Depreciation General Ledger LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Amount Descriptions Corporation Amount Descriptions Outstanding ck158 Outstanding ck160 REVENUE 411 Sales Revenue 431 Interest Income EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense Adjusted cash balance Bank service charge (Miscellaneous expense) Error in deposit Note collected by bank, net NSF check

Answer rating: 100% (QA)

The image youve provided appears to be a question for an accounting assignment involving a bank reconciliation and journal entries for Daisy Corporati... View the full answer