The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35...

 

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The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35 which differs from the $1.879.50 book balance of cash on that date. In attempting to reconcile the difference, the accountant noted the following facts: 1. The bank recorded a service charge of $15 which was not recorded on the books of SIAST Company. 2. A deposit of $500 was made on the last day of the month but was not recorded by the bank. 3. A cheque written for $176 had been recorded on the SIAST Company books as $167. The bank paid the correct amount. The cheque was in payment of utilities. 4. Cheque #522 was written during September but has not been processed by the bank. The amount was $422.85. 5. Cheque # 473 for $1,000 is still outstanding from August. 6. A cheque for $100 deposited by SIAST Company from Jim White, a credit customer, was returned marked "Not Sufficient Funds". 7. A credit memorandum stated that the bank collected a note receivable of $200 for SIAST Company and charged a $2 collection fee. SIAST Company had not previously recorded the collection. REQUIRED: 1. Prepare, in good form, a bank reconciliation which shows the correct cash balance on September 30, 2014. 2. Prepare the journal entries to correct the company's cash account. The bank statement dated September 30, 2014 for the SIAST Company showed a balance of $2,876.35 which differs from the $1.879.50 book balance of cash on that date. In attempting to reconcile the difference, the accountant noted the following facts: 1. The bank recorded a service charge of $15 which was not recorded on the books of SIAST Company. 2. A deposit of $500 was made on the last day of the month but was not recorded by the bank. 3. A cheque written for $176 had been recorded on the SIAST Company books as $167. The bank paid the correct amount. The cheque was in payment of utilities. 4. Cheque #522 was written during September but has not been processed by the bank. The amount was $422.85. 5. Cheque # 473 for $1,000 is still outstanding from August. 6. A cheque for $100 deposited by SIAST Company from Jim White, a credit customer, was returned marked "Not Sufficient Funds". 7. A credit memorandum stated that the bank collected a note receivable of $200 for SIAST Company and charged a $2 collection fee. SIAST Company had not previously recorded the collection. REQUIRED: 1. Prepare, in good form, a bank reconciliation which shows the correct cash balance on September 30, 2014. 2. Prepare the journal entries to correct the company's cash account.

Answer rating: 100% (QA)

Solution 1 2 Journal Entries Date Account ... View the full answer