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    Problem 7-3a

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    academyiwinn

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    Problem 7-3a

    Uploaded by

    academyiwinn
    15 views3 pages

    Original Title

    PROBLEM 7-3A

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    15 views3 pages

    Problem 7-3a

    Uploaded by

    academyiwinn

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    You are on page 1of 3

    To your surprise, the person you replaced brought in the June bank statement as it

    had been mailed to her home. While preparing the June bank reconciliation, you
    notice that cheque #882 for $1,800 cleared the bank in June but is not among the
    cancelled cheques. What should you do? Explain.

    Problem 7-6A Preparing a bank reconciliation and recording


    adjustments LO6

    CHECK FIGURE: a. Adjusted book balance = $7,193


    The bank reconciliation prepared by Gemma Tours on March 31, 2023, appeared
    as follows:

    Gemma Tours
    Bank Reconciliation
    March 31, 2023

    Bank statement balance $14,800 Book balance $32,710

    Add:

    Deposit of March 31 in transit 21,050

    $35,850

    Deduct:

    Outstanding cheques:

    #79 $1,250

    #84 1,890 3,140

    Adjusted bank balance $32,710 Adjusted book balance $32,710

    The Cash account in the general ledger appeared as follows on April 30: Page 571

    Cash Acct. No. 101

    Date Explanation PR Debit Credit Balance

    2023

    March 31 Balance 32,710.00

    April 30 CR11 34,049.00 66,759.00


    Cash Acct. No. 101

    Date Explanation PR Debit Credit Balance

    30 CD14 43,643.00 23,116.00

    A list of deposits made and cheques written during April, taken from the cash
    receipts journal and cash disbursements journal, is shown below:

    Deposits Made Cheques Written

    April 7 $14,200 No. 91 $ 1,200

    13 850 92 5,230

    18 13,600 93 2,590

    23 945 94 3,452

    27 1,890 95 2,900

    30 2,564 96 1,811

    Total April Cash Receipts $34,049 97 8,470

    98 2,900

    99 8,590

    100 6,500

    Total April Cash Disbursements $43,643

    The following bank statement is available for April:

    Bank Statement

    April 30, 2023


    To: Gemma Tours Bank of Montreal

    Cheques/Charges Deposits/Credits Balance

    14,800

    #93 04/02 2,509 04/03 21,050 33,341

    #92 04/07 5,230 04/07 14,200 42,311


    Bank Statement

    April 30, 2023


    To: Gemma Tours Bank of Montreal

    #84 04/13 1,890 04/13 850 41,271

    NSF 04/18 6,540 04/18 13,600 48,331

    #95 04/23 2,900 04/23 945 46,376

    #99 04/27 8,590 04/27 1,890 39,676

    #96 04/30 1,811 04/30 2,564 40,429

    #97 04/30 8,470 04/30 46 32,005

    #94 04/30 3,452 28,553

    PMT 04/30 9,420 19,133

    INT 04/30 35 19,098

    SC 04/30 55 19,043

    NSF = Not Sufficient SC = Service PMT = Principal INT = Interest


    Funds Charge Payment

    In reviewing cheques returned by the bank, the bookkeeper discovered that cheque
    #93, for delivery expense, was recorded in the cash disbursements journal
    incorrectly as $2,590. The NSF cheque was that of customer Laura Clark,
    deposited in April.
    Page 572

    Required
    a. Prepare a bank reconciliation at April 30.
    b. Prepare the necessary journal entries to bring the general ledger Cash account
    into agreement with the adjusted balance on the bank reconciliation.

    Problem 7-7A Preparing a bank reconciliation and recording


    adjustments LO6

    CHECK FIGURE: 1. Adjusted book balance = $31,984

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