Problem 8-4B

Chapter 8 Cash Fraud, and internal Control 321 The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash bilance as of December 31 book balance of cash with its bank Problem 8.48 Preparing a bank The December 31 cash balance according to the accounting records is $32,878.30, and the bank state- Teconciliation and ment cash balance for that date is $46,822.40. recording adjustments Check No. 1242 for $410.40. Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are out 00 are out- P3 T standing checks as of December 31. Check No. 1207 had been correctly drawn for $3,456 to pay for office supplies but was crocs entered in the accounting records as $3,465. d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in pay- ment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions. The bank statement shows that the bank collected $18.980 cash on a note receivable for the company Severino did not record this transaction before receiving the statement. Severino's December 31 daily cash receipts of $9.583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the recon- ciled cash balance as of December 31. Check (1) Reconciled balance. $51.005.802 2 Cr. Notes Receivaba $18.980.00 Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstand ing at that time, No. 1771 for $781 and No. 1780 for $1,425.90. Check No. 1780 was still outstanding as of May 31. The following information is available for its May 31 reconciliation. From the May 31 Bank Statement Problem Preparing a reconciliation and recording adjustments Chapter 8 Cash, Fraud, and internal Control The following int b. Check No llowing information is available to reconcile Severino Co.'s book balance of cash with its bank book balance of cash with its bank Problem 8-4B ement cash balance as of December 31. Preparing a bank The December 31 cash balance according to the accounting records is $32,878.30, and the bank state- reconciliation and nent cash balance for that date is $46,822.40. recording adjustmd No. 1242 for $410.40, Check NO. 1273 for $4.589.30. and Check No. 1282 for $400 am standing checks as of December 31. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. The bank statement shows a $762.50 NSF check received from a customer. Titus Industries, in pay ment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions. The bank statement shows that the bank collected $18,980 cash on a note receivable for the company. Severino did not record this transaction before receiving the statement. f. Severino's December 31 daily cash receipts of $9,583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31. 2. Prepare the journal entries necessary to make the company's book balance of cash equal to the recon- ciled cash balance as of December 31. Check balance, (2) Cr. No $ 18,980 Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstand- ing at that time, No. 1771 for $781 and No. 1780 for $1,425.90. Check No. 1780 was still outstanding as of May 31. The following information is available for its May 31 reconciliation. Probi Prepan recon recor tomont