olgert
Mar 5, 2010, 01:29 PM
Bank Reconciliation
(a) on November 30, after all transactions have been recorded, the balance in the company's cash account has a balance of $27,202.
(b) the company's bank statement shows a balance on November 30 of $29,279.
(c) outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
(d) a credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and credited the remainder of $770 to Avisa's account.
(e) a debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
(f) a deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.
(g) examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
(h) included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.
Based on the above information, prepare the November bank reconciliation for the Avisa Company.
When I looked at the book this is how the example showed it but here it comes out wrong. I checked online but people had done their different and I think this is how my teacher wants it done. The other way that I've seen it is like this.
Balance per bank statement $29,279
less outstanding checks ($2,984)
less note collection ($770)
add NSF check $67
add night deposit $1,675
less recording error ($90)
add service charge $25
= Balance per cash records $27,202
I can do it like this but I think it needs to be done like bellow. This is accounting 101 class.
Bank Balance $29,279... Book Balance $27,202
Outstanding Checks... Bank service charges $25
#3030 $1,525 Credit memo $770
#3556 $1,459 NSF Checks $67
$2984 Bank Errors
Totals $27,970 $27,974
The problem is the totals don't come out the same. Ty for helping
(a) on November 30, after all transactions have been recorded, the balance in the company's cash account has a balance of $27,202.
(b) the company's bank statement shows a balance on November 30 of $29,279.
(c) outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
(d) a credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and credited the remainder of $770 to Avisa's account.
(e) a debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
(f) a deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.
(g) examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
(h) included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.
Based on the above information, prepare the November bank reconciliation for the Avisa Company.
When I looked at the book this is how the example showed it but here it comes out wrong. I checked online but people had done their different and I think this is how my teacher wants it done. The other way that I've seen it is like this.
Balance per bank statement $29,279
less outstanding checks ($2,984)
less note collection ($770)
add NSF check $67
add night deposit $1,675
less recording error ($90)
add service charge $25
= Balance per cash records $27,202
I can do it like this but I think it needs to be done like bellow. This is accounting 101 class.
Bank Balance $29,279... Book Balance $27,202
Outstanding Checks... Bank service charges $25
#3030 $1,525 Credit memo $770
#3556 $1,459 NSF Checks $67
$2984 Bank Errors
Totals $27,970 $27,974
The problem is the totals don't come out the same. Ty for helping