E5-9 Prepare bank reconciliation and adjustments. This information relates to th

Question

E5-9 Prepare bank reconciliation and adjustments. This information relates to the Cash account in the ledger of Howard Company. Balance September 1 - $16,400; Cash deposited - $64,000 Balance September 30 - $17,600; Checks written - $62,800 The September bank statement shows a balance of $16,500 at September 30 and the following memoranda. Credits Debits Collection of electronic funds transfer $1,830 NSF checks: H. Kane $     560 Interest earned on checking account 45 Safety deposit box rent 60 At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383. Instructions (a) Prepare the bank reconciliation at September 30, 2017. (b) Prepare a tabular analysis for the adjustments at September 30, assuming the NSF check was from a customer on account. Use the following column headings: Cash, Accounts Receivable, Revenues, and Expenses. Include margin explanations for the changes in revenues and expenses. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) HOWARD COMPANY Bank Reconciliation September 30, 2017 Cash balance per bank statement Value Add: Deposits in transit Value ? Less: Outstanding checks Value Adjusted cash balance per bank ? Cash balance per books Value Add: Collection of note receivable Value           Interest earned Value ? ? Less: NSF check Value            Safety deposit box rent Value ? Adjusted cash balance per books ? Stockholders' Equity (b) Assets = Liabilities + Account Cash + Accts. Rec. = +Revenues -Expenses September 30 Value Value 30 Value Value Text 30 Value Value 30 Value Value Text After you have completed E5-9, consider the following additional question: 1. Assume that the note, interest on the note and the NSF check changed to $2,000, $50 and $800 respectively. Outstanding checks also changed to $2,448.   Show the impact of these changes on the bank reconciliation and on the tabular adjustments. SOLVE FOR EVERYTHING THAT IS BLANK ACCORING TO EACH PROBLEM E5-9 Prepare bank reconciliation and adjustments. This information relates to the Cash account in the ledger of Howard Company. Balance September 1 - $16,400; Cash deposited - $64,000 Balance September 30 - $17,600; Checks written - $62,800 The September bank statement shows a balance of $16,500 at September 30 and the following memoranda. Credits Debits Collection of electronic funds transfer $1,830 NSF checks: H. Kane $     560 Interest earned on checking account 45 Safety deposit box rent 60 At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383. Instructions (a) Prepare the bank reconciliation at September 30, 2017. (b) Prepare a tabular analysis for the adjustments at September 30, assuming the NSF check was from a customer on account. Use the following column headings: Cash, Accounts Receivable, Revenues, and Expenses. Include margin explanations for the changes in revenues and expenses. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) HOWARD COMPANY Bank Reconciliation September 30, 2017 Cash balance per bank statement Value Add: Deposits in transit Value ? Less: Outstanding checks Value Adjusted cash balance per bank ? Cash balance per books Value Add: Collection of note receivable Value           Interest earned Value ? ? Less: NSF check Value            Safety deposit box rent Value ? Adjusted cash balance per books ? Stockholders' Equity (b) Assets = Liabilities + Account Cash + Accts. Rec. = +Revenues -Expenses September 30 Value Value 30 Value Value Text 30 Value Value 30 Value Value Text After you have completed E5-9, consider the following additional question: 1. Assume that the note, interest on the note and the NSF check changed to $2,000, $50 and $800 respectively. Outstanding checks also changed to $2,448.   Show the impact of these changes on the bank reconciliation and on the tabular adjustments. SOLVE FOR EVERYTHING THAT IS BLANK ACCORING TO EACH PROBLEM

Explanation / Answer

Bank reconciliation Ending balance as per bank statement 16500 Add Deposit in transit 4738 Error by bank 4738 Less Outstanding checks 2383 Adjusted bank balance 18855 Ending balance as per cash account 17600 Add Directly collected by Bank EFT 1830 Interest revenue 45 1875 Less Service charges 60 NSF 560 620 Adjusted cash balance 18855

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