Problem 8-2 (IAA) e Company provided the following ledger account of the nsibl 6
ID: 2327930 • Letter: P
Question
Problem 8-2 (IAA) e Company provided the following ledger account of the nsibl 6esh in bank maintained with Second Bank: SECOND BANK 1 Balance 6 Deposit 12 Deposit 24 Deposit 31 Deposit 100,000 30,000 40,000 50,000 60,000 Dec. 1 Check No. 771 20,000 772 5,000 773 35,000 774 15,000 775 30,000 776 25,000 777 40,000 6 10 14 18 24 The following bank statement was received from the Second Bank by Sensible Company Date Checks Dec. 1 Balance Deposits Balance 130,000 10,000 20,000 5,000 35,000 15,000 52,000 8,000 10,000 5,000 Check No. 768 30,000 40,000 12 12 24 28 NSF check 28 Service charge 774 776 1042 50,000 45,000 CMExplanation / Answer
SOLUTION:
BANK RECONCILIATION- SENSIBLE COMPANY, Dec'-31
BOOK BALANCE:
Cash balance per ledger
$110,000
Plus: Credit Memo
$45,000
Total Amount
$155,000
Minus: Debit Memo
-$10,000
-$5,000
-$15,000
Total Amount
$140,000
Minus: Bank Error
-$27,000
Adjusted Book Balance
$113,000
BANK BALANCE:
Cash Balance per bank
$135,000
Plus: Deposit in Transit
$60,000
Total Amount
$195,000
Minus: Outstanding Checks
Chq No. 770
-$20,000
Chq No. 775
-$30,000
Chq No. 777
-$40,000
-$90,000
Total Amount
$105,000
Plus: Bank Error
$8,000
Adjusted Bank Balance
$113,000
Journal entries:
Debit
Credit
Bank Service Charge
$5,000
Cash In Bank
$45,000
Notes Receivable
$50,000
Bank Service Charge
$5,000
Cash In Bank
$5,000
Accounts Receivable
$10,000
Cash in Bank
$10,000
BOOK BALANCE:
Cash balance per ledger
$110,000
Plus: Credit Memo
$45,000
Total Amount
$155,000
Minus: Debit Memo
-$10,000
-$5,000
-$15,000
Total Amount
$140,000
Minus: Bank Error
-$27,000
Adjusted Book Balance
$113,000
BANK BALANCE:
Cash Balance per bank
$135,000
Plus: Deposit in Transit
$60,000
Total Amount
$195,000
Minus: Outstanding Checks
Chq No. 770
-$20,000
Chq No. 775
-$30,000
Chq No. 777
-$40,000
-$90,000
Total Amount
$105,000
Plus: Bank Error
$8,000
Adjusted Bank Balance
$113,000