Preparing a bank reconciliation and recording entries P3 The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash balance as of December 31. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40. b. Check No. 1242 for $410.40, Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are outstanding checks as of December 31. c. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in payment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions. e. The bank statement shows that the bank collected $18,980 cash on a note receivable for the company. Severino did not record this transaction before receiving the statement. f. Severino's December 31 daily cash receipts of $9,583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31.
Preparing a bank reconciliation and recording entries P3 The following information is available to reconcile Severino Co.'s book balance of cash with its bank statement cash balance as of December 31. a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank statement cash balance for that date is $46,822.40. b. Check No. 1242 for $410.40, Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are outstanding checks as of December 31. c. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously entered in the accounting records as $3,465. d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in payment of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing. Severino had not yet recorded these transactions. e. The bank statement shows that the bank collected $18,980 cash on a note receivable for the company. Severino did not record this transaction before receiving the statement. f. Severino's December 31 daily cash receipts of $9,583.10 were placed in the bank's night depository on that date but do not appear on the December 31 bank statement. Required 1. Prepare the bank reconciliation for this company as of December 31.
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 2.7C
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My adjusted balances are supposed to balance, but they are not.
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Paid postage expense of $18.
30
31
31
...
Reimbursed Geldof $56.80 for mileage expense.
Cash of $61.53 remained in the fund. Sorted the petty cash receipts by accounts affected and
exchanged them for a check to reimburse the fund for expenditures.
The petty cash fund amount is increased by $50 to a total of $300.
Required
1. Prepare the journal entry to establish the petty cash fund.
Check (2) Total expenses, $189.47
(3a & 3b) Total Cr. to Cash, $238.47
2. Prepare a petty cash payments report for March with these categories: delivery expense, mileage
expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.
Problem 8-4B
Preparing a bank reconciliation and recording entries
P3
The following information is available to reconcile Severino Co.'s book balance of cash with its bank
statement cash balance as of December 31.
a. The December 31 cash balance according to the accounting records is $32,878.30, and the bank
statement cash balance for that date is $46,822.40.
b. Check No. 1242 for $410.40, Check No. 1273 for $4,589.30, and Check No. 1282 for $400 are
outstanding checks as of December 31.
c. Check No. 1267 had been correctly drawn for $3,456 to pay for office supplies but was erroneously
entered in the accounting records as $3,465.
d. The bank statement shows a $762.50 NSF check received from a customer, Titus Industries, in payment
of its account. The statement also shows a $99 bank fee in miscellaneous expenses for check printing.
Severino had not yet recorded these transactions.
e. The bank statement shows that the bank collected $18,980 cash on a note receivable for the company.
Severino did not record this transaction before receiving the statement.
f. Severino's December 31 daily cash receipts of $9,583.10 were placed in the bank's night depository on
that date but do not appear on the December 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of December 31.
2. Prepare the journal entries necessary to make the company's book balance of cash equal to the
reconciled cash balance as of December 31.
Check (1) Reconciled balance, $51,005.80; (2) Cr. Notes Receivable, $18,980.00
Problem 8-5B
Preparing a bank reconciliation and recording entries
P3
Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks page
outstanding at that time, No. 1771 for $781 and No. 1780 for $1,425.90. Check No. 1780 was
still outstanding as of May 31. The following information is available for its May 31 reconciliation.
Date
May 1
Description
Withdrawals Deposits
$ 781.00
Balance
$18,290.70
$17,509.70
$17,127.20
41.70
May 1 Check #1771
May 2 Check #1783
May 4 Check #1780
$ 382.50
320
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Servino Co.
Bank Reconciliation
31-Dec-24
$46,822.40
$9,583.10
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Chk# 1242
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Chk# 1273
$410.40
$4,589.30
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$51,005.80
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Book Balance
$32,878.30
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$18,980
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Chk# 1267-Error
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Bank Fee
$50,987.80
$9
$762.50
$99
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