the following information is available to reconcile dibble company book balance
ID: 2498991 • Letter: T
Question
the following information is available to reconcile dibble company book balance cash with it bank statement cash balance as of April 30th to April 30th cash balance according to the accounting records is $68,356 and the bank statement cash balance for that day is 73,525.
a. the bank erroneously cleared of $480 check against the account in April that was issued by Dibble. the check documentation included with the bank statement indicates the check was actually issued by Flushing Company.
b. on April 30th the bank issued a credit memorandum for $53 interest earned on dibbles account.
c. when the April checks are compared with entries in the accounting records it is found that check number 1828 had been correctly drawn for $ $1,530 to pay for advertising but was erroneously entered in the accounting records as 1,350.
d. a credit memorandum indicates that the bank collected $10,000 cash on a note receivable for Dibble, deducted $30 collection fee and credited the balance to the company's cash account. Dibble did not record this transaction before receiving the statement.
e. a debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer. The bank assessed at $25 fee for processing it.
f. dibbles April 30th daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30th bank statement.
g. Dibble's April 30th cash disbursement journal indicates that check number 1837 for $584 and check number 1840 for $1,219 were both written and entered in the accounting records, but are not among the cancelled checks.
1. prepare the bank reconciliation for this company as of April 30th
2. prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of April 30th.
Explanation / Answer
Bank Reconciliation Statement for this company as of April 30th
Bank A/c -- Dr. $53
Interest earned $53
Adverting ----- Dr. $180
Bank A/c $180
Bank A/c --- Dr. $10,000
Customer / Sales $10,000
Bank charges --- Dr. $30
Bank A/c $30
NSF Check --- Dr. $870
Bank A/c $870
Bank Charges ---- Dr. $25
Bank A/c $25
Customer / Sales --- Dr. $5,102
Bank A/c $5,102
Bank A/c ---- Dr. $584
Cancelled Checks $584
Bank A/c ---- Dr. $1219
Cancelled Checks $1219
s.no. Particulars Amount $ Journal Entry to equate the company's book balance with Bank Statement Balance as per Accounting records 68,356 a check actually issued by Flushing Company +480 no journal b interest earned +53Bank A/c -- Dr. $53
Interest earned $53
c short entered in records -180Adverting ----- Dr. $180
Bank A/c $180
d direct bank collected +10000Bank A/c --- Dr. $10,000
Customer / Sales $10,000
d direct collection fee -30Bank charges --- Dr. $30
Bank A/c $30
e NSF check -870NSF Check --- Dr. $870
Bank A/c $870
e fee for processing NSF check -25Bank Charges ---- Dr. $25
Bank A/c $25
f placed in the bank's night depository -5102Customer / Sales --- Dr. $5,102
Bank A/c $5,102
g cancelled checks +584Bank A/c ---- Dr. $584
Cancelled Checks $584
g cancelled checks +1219Bank A/c ---- Dr. $1219
Cancelled Checks $1219
Balance as per Bank Statement 73,525Related Questions
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