Feller, Inc. received its bank statement for the month ended 12/31/20. The bank statement showed a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Feller, Inc. received its bank statement for the month ended 12/31/20. The bank statement showed a balance of $10,291.13. The company's general ledger showed a balance of $9,493.05. The following items were discovered when comparing the bank statement to the books of the company: a. The bank charged check processing fees of $75.00. b. There was a $2,102.45 automatic withdrawal to pay the mortgage. Of the $2,102.45, $995.90 was for interest which had been accrued. c. The bank charged Feller's account $155.00 for a monthly bank service charge. d. Check # 2509 for $242.14 written by Feller, Inc. was cleared by the bank on Fallon, Co.'s account. e. The bank collected a note receivable for Feller in the amount of $2,020.50. The principal repayment was for $1,347.00; the balance was interest, which had not been accrued. f. The bank charged the company $95.00 to print new checks. g. The bank correctly cleared check #2504 for $482.00. The company had recorded this check in its books for $842.00. The check had been written in payment of utilities. h. A $2,984.60 deposit was recorded on the company books on 12/31/20. The deposit was taken to the bank too late to be recorded on that day. The bank recorded the deposit on 1/3/21. i. Outstanding checks totaled $2,414.69. j. Feller's income tax refund of $1,172.80 was directly deposited in the bank account. A receivable had been set up in 2018 in anticipation of the refund. Required: a. Prepare a bank reconciliation in good form. b. Make all necessary journal entries to adjust Feller, Inc.'s books. Feller, Inc. received its bank statement for the month ended 12/31/20. The bank statement showed a balance of $10,291.13. The company's general ledger showed a balance of $9,493.05. The following items were discovered when comparing the bank statement to the books of the company: a. The bank charged check processing fees of $75.00. b. There was a $2,102.45 automatic withdrawal to pay the mortgage. Of the $2,102.45, $995.90 was for interest which had been accrued. c. The bank charged Feller's account $155.00 for a monthly bank service charge. d. Check # 2509 for $242.14 written by Feller, Inc. was cleared by the bank on Fallon, Co.'s account. e. The bank collected a note receivable for Feller in the amount of $2,020.50. The principal repayment was for $1,347.00; the balance was interest, which had not been accrued. f. The bank charged the company $95.00 to print new checks. g. The bank correctly cleared check #2504 for $482.00. The company had recorded this check in its books for $842.00. The check had been written in payment of utilities. h. A $2,984.60 deposit was recorded on the company books on 12/31/20. The deposit was taken to the bank too late to be recorded on that day. The bank recorded the deposit on 1/3/21. i. Outstanding checks totaled $2,414.69. j. Feller's income tax refund of $1,172.80 was directly deposited in the bank account. A receivable had been set up in 2018 in anticipation of the refund. Required: a. Prepare a bank reconciliation in good form. b. Make all necessary journal entries to adjust Feller, Inc.'s books.
Expert Answer:
Answer rating: 100% (QA)
1 Feller Inc Bank Reconciliation For the month ended 123120 Balance as per bank stateme... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
Students also viewed these accounting questions
-
Power Ltd. received its bank statement for the month ended 31 July 2021. It shows a credit balance of $10,321, while the firms cash at the bank ledger shows a different balance from its bank...
-
The following bank statement for the month of May is for El Guapo Industries: The following information was taken from the books at El Guapo: Required Prepare El Guapo's May bank reconciliation and...
-
The cash records and bank statement for the month of May for Diaz Entertainment are shown below. Additional information: a. The difference in the beginning balances in the companys records and the...
-
After their divorce, Brian Bermudez and Amanda Schmidt shared custody of their son. Schmidt suspected Bermudez of abusing the child, so she refused to let him visit. Bermudez filed a petition...
-
1. Based on the description in the case and the definitions in the text, would you characterize Roche Diagnostics as an international, multinational, or global organization? Explain. 2. Evaluate how...
-
Decenture has four new IT hires available for assignment to ERP implementation projects. Their expertise varies across platforms and technologies, resulting in different time estimates for completing...
-
8. YOU BE THE JUDGE WRITING PROBLEM Lydia D'Ettore received a degree in computer programming at DeVry Institute of Technology, with a grade-point average of 2.51. To finance her education, she...
-
Bill Binder's business nearly went under when Colorado almost passed the bottle bill. Binder's Beverage produced soft drinks for many of the large grocery stores in the area. After the bottle bill...
-
The market price of ABC stock has been very volatile and you think this volatility will continue for a few weeks. Thus, you decide to purchase a one-month call option contract on ABC stock with a...
-
Forward exchange contract designated as a fair value hedge of a foreign-currency-denominated firm commitment to sell inventory, weakening $US Our U.S.-based company enters into a "firm commitment"...
-
The equation of a circle is given below. Identify the radius and the center. Then graph the circle. x+y-4x+8y=-4 Radius: Center: 1.0 X 8 08 100 64 5+ 14+ 3+
-
Brownside Company is highly decentralized. The divisions can issue their own debt, but they must pay their own interest. The manager of Brownsides Park Division is evaluated based on ROI. He has...
-
Can working capital, like manufacturing, be outsourced? Could a company operate with zero or negative capital employed, make some profits, and therefore have a ROCE of infinity?
-
Define the word cost in the context of management accounting.
-
On the first day of the year, the City of Wolfe bought $20,000 of equipment with a five-year life and no salvage value for its school system. It was capitalized but no other entries were ever made....
-
If rp is positive in Equation 14.9, then foreign assets are perceived as being more risky than domestic counterparts. In that case, according to Equation 14.9, what will happen to the exchange rate...
-
order to provide effective treatment, psychologists must gain an understanding of their patients' personalities, behaviors, cognitive abilities, and social environment. Psychologists learn about...
-
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i) t . Trevor's parents deposit $7800...
-
At January 1, 2018, Hammersmith Limited reported the following property, plant, and equipment accounts: Accumulated depreciation-buildings.....................$24,200,000 Accumulated...
-
On January 1, 2018, Burlington Inc.'s general ledger contained these opening balances for its liability accounts: Accounts payable..................................$52,000 CPP...
-
The financial statements of The North West Company Inc. are presented in Appendix A at the end of this book. The following selected condensed information (in thousands) has been taken from these, and...
-
Sage, Inc. bought 40% of Adams Corporations outstanding common stock on January 2, 2008 for \($400,000.\) The carrying amount of Adams net assets at the purchase date totaled \($900,000\). Fair...
-
In January 2008, Harold Corporation acquired 20% of Otis Companys outstanding common stock for \($400,000.\) This investment gave Harold the-ability to exercise significant influence over Otis. The...
-
On April 1, 2008, Dart Company paid \($620,000\) for all issued and outstanding common stock of Wall Corporation in a transaction properly accounted for as a purchase. Walls recorded assets and...
Study smarter with the SolutionInn App