Daisy Company received a bank statement for February, as follows: 1 2 3 4 3 4...
Fantastic news! We've Found the answer you've been seeking!
Question:
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
Expert Answer:
Answer rating: 100% (QA)
Bank Reconciliation statement is given below Daisy Company Bank Reconciliation February ... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
Students also viewed these accounting questions
-
The Daisy Company received a bank statement for February 2007, as follows: From: Central Bank, Denver, Co. 80222 To: Daisy Company, 1313 Williams St., Denver, Co. 80218 The receipt of $460 on...
-
Daisy Company received a bank statement for February, as follows: From: Central Bank, Denver, CO 80222 To: Daisy Company, 1313 Williams St., Denver, CO 80218 SC Service Charge NSF Check Returned CM...
-
In Exercises 8586, find a. (f g)(x); b. (g f)(x); c. (f g)(3). f(x)=x, g(x) = x + 1
-
Gridley Ltd. issued 800,000, 11%, 10-year bonds on December 31, 2016, for 730,000. Interest is payable annually on December 31. Gridley uses the straight-line method to amortize bond premium or...
-
On February 12, 2005, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows: ? Kingfisher?s business...
-
What is an Actor and what is its relationship to a UC?
-
Aubrae and Tylor Williamson began operations of their furniture repair shop (Furniture Refinishers, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on...
-
Write code In C++ Please Grocery Shopping List (list) Given a ListItem class, complete main() using the built-in list type to create a linked list called shoppingList. The program should read items...
-
? ?? Journalize the closing entries. Include Posting References, using the account numbers in your spreadsheet. Refer to your answers from Chapter 4, Part 1 to complete this part. If an amount box...
-
1.In a general partnership, a partners interest in specific partnership property is subject to a partners liability for alimony not transferable voluntarily or involuntarily transferable for a...
-
3) Eight Senate committees-Appropriations (A), Budget (B), Commerce (C), Energy (D), Environment (E), Foreign Relations (F), Homeland Security and Governmental Affairs (G), and Health (H) need to...
-
Small spiders are known to fly from place to place by letting out a length of silk, which then carries them around. Recently it was discovered that they're actually using the electric field of the...
-
Build an Excel Model to model the problem and answer the following questions (provide amodel template of each question). (a) Use goal programming proposed in the article to formulate this model (b)...
-
INSTRUCTIONS: We're looking to work with a new publisher that is interested in selling us two different placements. The publisher has told us that placement 1 has an approximate CTR of 0.3% and will...
-
Conclusive Remarks 4. Draw overall conclusions and make recommendations based on the evaluation of your chosen organization. 4.1. Summarize the process of evaluating an organization's strategy. 4.2....
-
A betterment rule is often a useful tool for construction and design professionals. This rule tackles the issue of unjust enrichment. But does this defense go far enough? what steps can a...
-
Use the method of Example 4.29 to compute the indicated power of the matrix. 1 0 1
-
When a contract has multiple elements, how does GAAP determine if one of the elements should be considered a separate unit of accounting?
-
On December 31, 2013, Carme Company had significant amounts of accounts receivable as a result of credit sales to its customers. Carme uses the allowance method based on credit sales to estimate bad...
-
On December 31, 2013, Excello Electric Company had $1 million of short-term notes payable due February 7, 2014. Excello expected to refinance these notes on a long-term basis. On January 15, 2014,...
-
With reference to Exercise 10.42, verify that the mean of the observed distribution is 1.6 , corresponding to \(40 \%\) of the cars requiring repairs. Then look up the probabilities for \(n=5\) and...
-
The following is the distribution of the hourly number of trucks arriving at a company's warehouse: Find the mean of this distribution, and using it (rounded to one decimal place) as the parameter...
-
Among 100 purification filters used in an experiment, 46 had a service life of less than 20 hours, 19 had a service life of 20 or more but less than 40 hours, 17 had a service life of 40 or more but...
Study smarter with the SolutionInn App