accounting question about bank and company reconciliation 429120

Aug 29, 2021 | Uncategorized

1.Which of the reconciling items listed below require an entry in the company’s accounts? (None of the transactions reported by bank debit and credit memos have been recorded by the company.)

Item Entry Required
1. Bank service charges. SelectYesNoItem 1
2. NSF check returned to company by the bank. SelectYesNoItem 2
3. Check incorrectly recorded by company. SelectYesNoItem 3
4. Check incorrectly charged by bank. SelectYesNoItem 4
5. Deposit in transit. SelectYesNoItem 5
6. Outstanding checks. SelectYesNoItem 6
7. Note collected by bank. SelectYesNoItem 7

Yes or No

2.Entries for Bank Reconciliation

The following data were accumulated for use in reconciling the bank account of Maplewood Co. for July:

  1. Cash balance according to the company’s records at July 31, $15,600.
  2. Cash balance according to thebank statement at July 31, $16,230.
  3. Checks outstanding, $3,180.
  4. Deposit in transit, not recorded by bank, $2,950.
  5. A check for $270 in payment of an account was erroneously recorded in the check register as $720.
  6. Bank debit memo for service charges, $50.

Journalize the entry or entries that should be made by the company.

3.Petty Cash Fund Entries

Journalize the entries to record the following:

  1. Check No. 6300 is issued to establish a petty cash fund of $1,200.
  2. The amount ofcash in the petty cash fund is now $200. Check No. 6527 is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $650; miscellaneous selling expense, $230; miscellaneous administrative expense, $90. (Since the amount of the check to replenish the fund plus the balance in the fund do not equal $1,200, record the discrepancy in thecash short and over account.)

a. Journalize the entry to establish the petty cash fund.

b. Journalize the entry to replenish the petty cash fund. If a box does not require an entry, leave it blank or enter “0”.