Maple Industries Inc. deposits all cash receipts on the day when they are receiv
ID: 2489882 • Letter: M
Question
Maple Industries Inc. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,591. The company’s bank statement as of December 31 shows an ending cash balance of $16,011. The following information was also available.
Outstanding checks as of December 31 total $2,306.
Check No. 2519, listed with the canceled checks, was correctly drawn for $850 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $940.
The December 31 cash receipts of $3,560 were placed in the bank’s night depository after banking hours and were not recorded on the December 31 bank statement.
The bank deducted $1,336 for an NSF check from a customer deposited on December 10.
1.
Prepare the bank reconciliation as of December 31.
Maple Industries Inc. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,591. The company’s bank statement as of December 31 shows an ending cash balance of $16,011. The following information was also available.
Explanation / Answer
Balance as per Cash Book
18591
Balance as per Bank Statement
16011
(-) Debit memo
80
(-) Outstanding check
2306
(+) Utilities Exp mistakenly record
(940 – 850)
90
(+) Cash receipt after banking hours
3560
(-) NSF check
1336
Up to date Balance
17265
Up to date balance
17265
Balance as per Cash Book
18591
Balance as per Bank Statement
16011
(-) Debit memo
80
(-) Outstanding check
2306
(+) Utilities Exp mistakenly record
(940 – 850)
90
(+) Cash receipt after banking hours
3560
(-) NSF check
1336
Up to date Balance
17265
Up to date balance
17265