Chapter 6 inclass (Compatibility Mode)- Word EFERENCES MAILINGS REVIEW VIEW 15-1

Question

Chapter 6 inclass (Compatibility Mode)- Word EFERENCES MAILINGS REVIEW VIEW 15-12:. I Ermphasis Heading 1 Title 1NoSpac" A- ,! . 2: Emp hases Heading 1 TNormal Strong Subtitle Subtle En. Intense E.. Quote ter sea. Subtle Re. : Paragraph Styles Gucci Bank Reconciliation December 31 $1,900 Book balance Ad $1,610 Bank statement balance Add: $90 800 2,700 Error (Ck 6267) Proceeds of note less $30 fee 470 Deposit of December 31 560 2,170 Deduct: Deduct: Checks No. 6273 $400 100 200 6282 6242 NSF check Printing fee $150 20 700 $2.000 170 $2.000 Adjusted bank balance Adjusted book balance d. When the December checks are compared with entries in the accounting records, it is found that Check No. 6267 had been correctly drawn for $340 to pay for office supplies but was erroneously entered in the accounting records as $430 A credit memorandum indicates that the bank collected $500 cash on a note receivable for the company, deducted a $30 collection fee, and credited the balance to the company's Cash account Gucci had not recorded this transaction before receiving the statement Two debit memoranda are enclosed with the statement and are unrecorded at the time of the reconciliation. One debit memorandum is for $150 and dealt with an NSF check for $140 received from a customer Prada Inc., in payment of its account. The bank assessed a $10 fee for processing it. The second debit memorandum is a $20 charge for check printing. Gucci had not recorded these transactions before receiving the statement e. f. Prepare the adjustment entries for the book from the above reconciliation.

Explanation / Answer

Solution 1:

Adjusting Journal Entries - Gucci S. No. Particulars Debit Credit d Cash A/c Dr $90.00       To Office Supplies $90.00 (Being incorrect recording of payments not corrected) e Cash A/c Dr $470.00 Service Charges Dr $30.00       To Notes Receivables $500.00 (Being note collected by bank and charged deducted) f - 1 Accounts receivables Dr $140.00 Service Charges Dr $10.00       To Cash $150.00 (Being Check dishonored by bank and charges debited for processing) f - 2 Service Charges Dr $20.00       To Cash $20.00 (Being check printing charges debited by bank)

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