Accounting 350 - Computer Spreadsheet Assignment #1 (Chapter 7) Brachycephalic I

Question

Accounting 350 - Computer Spreadsheet Assignment #1 (Chapter 7) Brachycephalic Inc. received its September 30, 2018 bank statement. It showed a balance of $10,600. It also showed bank charges of $35, collection of Louis Brandeis’ note for $1,891 and interest of $52, a collection fee of $11, and that Willy Brandt’s check of $506.40 was uncollectible. Brachycephalic Inc.’s ledger showed a cash balance of $5,362.45.

Comparison of the records with the bank statement revealed the following:

A deposit in transit of $1,756.95.

Checks outstanding on September 30 of

4221 $4,021.00

4225 62.15

4226 1,527.15

The bookkeeper had entered as $81 a $180 customer check that was for payment on account.

Check #4198 for $982 which had been issued to pay utilities had been entered as $829.

Check #4212 for $116.40 which had been issued to buy office supplies had been entered as $164.

1.Prepare the September 30, 2018 bank reconciliation.

2.Prepare the required entries on the books of Brachycephalic Inc.

Explanation / Answer

1. Bank reconciliation statement

2. Entries to be made in books of account

To bank. 35

To notes receivable 1891

To interest received 52

To bank 11

To bank. 506.4

To bank. 6.4

(153-99-47.6)

Do give your feedback!! Happy Learning :)

Particulars $ Balance as per Cash Book 5362.45 Add: Checks outstanding- 4221 4021 -4225 62.15 -4226 1527.15 Wrong entry by bookkeeper (180-81) 99 Wrongly entered (164-116.4) 47.6 Collection directly by bank 1891 Interest 52 Less: Deposit in transit 1756.95 Wronly entered (982-829) 153 Bank charges 35 Notes uncollectible 506.4 Collection fee 11 Balance as per Bank balance 10600

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.