Bluegrass Tonight is a nightclub in Nashville. The information necessary for preparing bank reconciliation for the...

 

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Bluegrass Tonight is a nightclub in Nashville. The information necessary for preparing bank reconciliation for the company at November 30 appears below: 1. As of November 30, cash per the bank statement is $41,631 per the accounting records, $48,609. 2. Cash receipts of $9,366 on November 30 were not deposited until December 1. 3. Among the paid checks returned by the bank was a stolen check for $1,512 paid in error after Bluegrass Tonight had officially notified the bank not to make payment. Thus, payment of this check was a bank error and should not have been charged against Bluegrass Tonight's bank account. 4. The following memoranda accompanied the bank statement: a. A debit memo for service charges $21 b. A debit memo attached to an $1,167 check which Bluegrass had accepted from a customer and deposited in its account, but which the bank had returned with the marking "NSF" c. A credit memo for interest earned on the account during November, $135. 5. The following checks had been issued by the nightclub but had not been paid by the bank as of November 30: No.921 for $2,346; No. 924 for $1,446; and No. 925 for $1,161. Instructions: Prepare the November 30 bank reconciliation. Pass necessary journal entries Caliente Products uses a perpetual inventory system. On January 1 the Inventory account had a balance of $93,500. During the first few days of January the following transactions occurred: Jan 2 Jan 3 Purchased merchandise on credit from bell Company for $12,500 Sold merchandise for cash, $9,000. The cost of this merchandise was $6,300. Bluegrass Tonight is a nightclub in Nashville. The information necessary for preparing bank reconciliation for the company at November 30 appears below: 1. As of November 30, cash per the bank statement is $41,631 per the accounting records, $48,609. 2. Cash receipts of $9,366 on November 30 were not deposited until December 1. 3. Among the paid checks returned by the bank was a stolen check for $1,512 paid in error after Bluegrass Tonight had officially notified the bank not to make payment. Thus, payment of this check was a bank error and should not have been charged against Bluegrass Tonight's bank account. 4. The following memoranda accompanied the bank statement: a. A debit memo for service charges $21 b. A debit memo attached to an $1,167 check which Bluegrass had accepted from a customer and deposited in its account, but which the bank had returned with the marking "NSF" c. A credit memo for interest earned on the account during November, $135. 5. The following checks had been issued by the nightclub but had not been paid by the bank as of November 30: No.921 for $2,346; No. 924 for $1,446; and No. 925 for $1,161. Instructions: Prepare the November 30 bank reconciliation. Pass necessary journal entries Caliente Products uses a perpetual inventory system. On January 1 the Inventory account had a balance of $93,500. During the first few days of January the following transactions occurred: Jan 2 Jan 3 Purchased merchandise on credit from bell Company for $12,500 Sold merchandise for cash, $9,000. The cost of this merchandise was $6,300.

Answer rating: 100% (QA)

Answer Step 1 Bank Reconciliation Statement is prepared when ther... View the full answer