EXERCISE 6-9
a.
|
Bank Reconciliation |
|
|
Unadjusted Bank Balance 6/30/X4 |
$13,679.85 |
|
Add: Deposits in Transit |
1,476.30 |
|
Less: Outstanding Check |
(1,843.74) |
|
True Cash Balance 6/30/X4 |
$13,312.41 |
|
Unadjusted Book Balance 6/30/X4 |
$13,283.75 |
|
Add: Credit Memo for Interest Earned |
35.00 |
|
Less: Debit Memo for Service Charges |
(6.34) |
|
True Cash Balance 6/30/X4 |
$13,312.41 |
b.
|
Date |
Account Titles |
Debit |
Credit |
|
Adj 1 |
Cash |
35.00 |
|
|
Interest Earned |
35.00 |
||
|
Adj 2 |
Bank Service Charge Expense |
6.34 |
|
|
Cash |
6.34 |
||
EXERCISE 6-10
Unadjusted Bank Balance, 6/30 $64,714.35
Plus: Deposits in Transit 1,464.95
Less: Outstanding Check (4,745.66)
True Cash Balance, 6/30 $61,433.64
EXERCISE 6-11
|
Unadjusted Book Balance, 5/31 |
$4,450 |
|
|
Add: Interest Earned |
$ 18 |
|
|
Note Collected by Bank |
450 |
468 |
|
Less: NSF Check |
38 |
|
|
Service Charge |
30 |
(68) |
|
True Cash Balance 5/31 |
$4,850 |
|
PROBLEM 6-2A
a.
|
Top Star Bank Reconciliation August 31, 20X6 |
|
|
Unadjusted Bank Balance, August 31, 20X6 |
$16,000 |
|
Add: Deposits in Transit |
2,260 |
|
Less: Outstanding Checks |
( 3,000) |
|
True Cash Balance, August 31, 20X6 |
$15,260 |
|
Unadjusted Book Balance, August 31, 20X6 |
$15,000 |
|
Add: Error in recording check for inventory |
360 |
|
Less: Debit Memo for new checks |
(100) |
|
True Cash Balance, August 31, 20X6 |
$15,260 |
b.
|
General Journal |
|||
|
Ref. |
Account Title |
Debit |
Credit |
|
1. |
Cash |
360 |
|
|
Inventory |
360 |
||
|
2. |
Office Supplies Expense |
100 |
|
|
Cash |
100 |
||
PROBLEM 6-3A
|
Green Light Auto Supply, Inc. Bank Reconciliation May 31, 20X7 |
||
|
Unadjusted Bank Balance, May 31, 20X7 |
$8,000 |
|
|
Add: Deposits in Transit |
$ 975 |
|
|
Bank Error |
650 |
1,625 |
|
Less: Outstanding Checks #3013 |
385 |
|
|
3054 |
735 |
|
|
3056 |
1,900 |
(3,020) |
|
True Cash Balance, May 31, 20X7 |
$6,605 |
|
|
Unadjusted Book Balance, May 31, 20X7 |
$5,565 |
|
|
Add: Note Collected by Bank |
$ 500 |
|
|
Error in recording payment to creditor |
700 |
1,200 |
|
Less: Collection Fee |
10 |
|
|
Bank Service Charge |
25 |
|
|
NSF Checks |
125 |
(160) |
|
True Cash Balance, May 31, 20X7 |
$6,605 |
|
*Unadjusted cash balance per Green Light’s books is computed as:
x + $1,200 - $160 = $6,605;
x = $5,565.