The following information is available for the Avisa Company for the month of No
ID: 2357995 • Letter: T
Question
The following information is available for the Avisa Company for the month of November:(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.
SHOW ALL WORK!!!!!!!
Explanation / Answer
(a.) On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202.
This is the beginning balance per books
(b.) The company's bank statement shows a balance on November 30 of $29,279.
This is the beginning balance per bank.
(c.) Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459
These are deductions from balance per bank
(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. –
This is an addition to the balance per book less the fee
(e.) A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.—
This is a deduction to the balance per book
(f.) A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.—
This is an addition to the balance per bank
(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.—
This difference of 90 is an addition to the balance per book
(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 –
This is a deduction to the balance per book.
Bank Reconciliation
Balance per Bank
29,279
Balance per Books
27,202
Add
Add
Deposit in transit
1,675
Collection of note less fee
770
30,954
Recording error
90
860
Deduct
28,062
Outstanding checks
Deduct
3030
1,525
NSF check
67
3556
1,459
Service charge
25
92
2,986
Adjusted bank balance
27,970
Adjusted book balance
27,970
Bank Reconciliation
Balance per Bank
29,279
Balance per Books
27,202
Add
Add
Deposit in transit
1,675
Collection of note less fee
770
30,954
Recording error
90
860
Deduct
28,062
Outstanding checks
Deduct
3030
1,525
NSF check
67
3556
1,459
Service charge
25
92
2,986
Adjusted bank balance
27,970
Adjusted book balance
27,970
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