R-Enterprise, a real estate dealer, has a Cash account in the general ledger showing a balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
R-Enterprise, a real estate dealer, has a Cash account in the general ledger showing a balance of $25,380 at December 31, 2020 (prior to performing bank reconciliation). On the same date, the balance as per the company's bank statement is $30,000. A detailed review of the bank statement discloses the following: 1. Deposit in transit from November 30th bank reconciliation amounts to $3,000. 2. The deposit in transit on December 31st amount to $8,500. 3. Bank service charges total $450. 4. Outstanding checks amounting to $20,100 from November 30th bank reconciliation were cashed during December. 5. Outstanding checks on December 31st total $28,500. 6. The bank statement showed an NSF charge of $800 for a check issued by a customer to R-Enterprise's on account. 7. A cashed check (no. 108) written by the company in the amount of $3,260 for office supplies was incorrectly recorded in the cash ledger as a debit to supplies of $3,620, and a credit to Cash of $3,620. 8. Bank statement had a CM of $2,610. Required a. Prepare the company's bank reconciliation dated December 31, 2020. (10 points, 15 minutes) b. Prepare the journal entries to reconcile the books. (8 points, 10 minutes) Solution (a). Balance per Bank Statement Balance per Book $30,000 $25,380 Add: Less: Reconciled value Add: Less: Reconciled value: R-Enterprise, a real estate dealer, has a Cash account in the general ledger showing a balance of $25,380 at December 31, 2020 (prior to performing bank reconciliation). On the same date, the balance as per the company's bank statement is $30,000. A detailed review of the bank statement discloses the following: 1. Deposit in transit from November 30th bank reconciliation amounts to $3,000. 2. The deposit in transit on December 31st amount to $8,500. 3. Bank service charges total $450. 4. Outstanding checks amounting to $20,100 from November 30th bank reconciliation were cashed during December. 5. Outstanding checks on December 31st total $28,500. 6. The bank statement showed an NSF charge of $800 for a check issued by a customer to R-Enterprise's on account. 7. A cashed check (no. 108) written by the company in the amount of $3,260 for office supplies was incorrectly recorded in the cash ledger as a debit to supplies of $3,620, and a credit to Cash of $3,620. 8. Bank statement had a CM of $2,610. Required a. Prepare the company's bank reconciliation dated December 31, 2020. (10 points, 15 minutes) b. Prepare the journal entries to reconcile the books. (8 points, 10 minutes) Solution (a). Balance per Bank Statement Balance per Book $30,000 $25,380 Add: Less: Reconciled value Add: Less: Reconciled value:
Expert Answer:
Answer rating: 100% (QA)
Solution 1 2 Balance as per Bank statement Add Deposit in trans... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 at December 31 (but prior to performing a bank reconciliation). The companys bank statement showed a balance of...
-
The Cash account in the general ledger of Ciavarella Corporation shows a balance of $112,000 at December 31, year 1 (prior to performing a bank reconciliation). The company's bank statement shows a...
-
The Cash account in the general ledger of Hendry Corporation shows a balance of $96,990 at December 31, 2011 (prior to performing a bank reconciliation). The companys bank statement shows a balance...
-
In a law firm consisting of 20 lawyers, 9 are criminal lawyers, 6 are divorce lawyers, and 4 are both criminal and divorce lawyers. If a lawyer from this firm is chosen at random, what is the...
-
Angie Baden is studying for her accounting midterm examination. Identify for Angie the advantages and disadvantages of the corporate form of business organization.
-
Figure P2.22 shows two pendulums suspended from frictionless pivots and connected at their midpoints by a spring [1]. Assume that each pendulum can be represented by a mass M at the end of a mass...
-
How often do you think boards should evaluate their own performance? Why?
-
An engineer has received two bids for an elevator to be installed in a new building. The bids, plus his evaluation of the elevators, are shown in Table P5-69. The engineer will make a present worth...
-
This tool is best for understanding where your target market is located.
-
The price of Cilantro, Inc., stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent. a. Suppose the current...
-
Roman Mfg.'s uses a standard cost system which has provided the following data: Units of output manufactured Direct labor: 950 Standard hours allowed 4 hours per unit of product Standard wage rate...
-
How about the OCI (Other Comprehensive Income) practice in Thailand? and please briefly describe it main content and your understanding about it.
-
Why are transfer prices based on total actual costs are not appropriate as the basis for divisional performance measurement?
-
Cost Management is extremely important for running successful projects. With reference to this: Describe the common sources of project cost.
-
You work as an analyst at a discretionary equity hedge fund. You have the investment thesis that it pays to buy the "best in breed", that is, stocks that are the industry leaders. You find the...
-
What will be a current yield of a bond having a coupon of 7.7 percent (assume it is paid once annually) Maturing in 11 years at a value of $1,000 and a current market price of $840 ?
-
Analyze the class below. It does not compile. public class Circle implements Comparable private double radius public Circle(double radius) this.radius radius program does not compile because it has...
-
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
-
Campus Theater adjusts its accounts every month. The company's unadjusted trial balance dated August 31, current year, appears as follows. Additional information is provided for use in preparing the...
-
Explain how the high-low method determines: a. The variable portion of a semivariable cost. b. The fixed portion of a semivariable cost.
-
Howard Jaffe is the founder and manager of Old Town Playhouse. The business wishes to obtain a bank loan to finance the production of its next play. As part of the loan application, Jaffe was asked...
-
The annual budget for Diamond Corporation for 2019 included the following costs and expenses: Required a. Compute the plant-wide predetermined manufacturing overhead rate for 2019 using direct labor...
-
Assume all materials are added at the beginning of the production process, and conversion costs are added uniformly throughout the process. Beginning work-in-process is composed of 100 units, which...
-
Beginning work-in-process is composed of 100 units. Also assume that 700 units are started and completed during the period, and ending work-in-process includes 90 units. Summarize "Where do the units...
Study smarter with the SolutionInn App