Student Name:
Class:
27,233$ 27,497$
11,514 7,955
38,747 35,452
1,482$ NSF check 805$
382 Service charge 25
Rent Expense
Cash
b. Collection of $8,000 note less $45 collection fee is added to bank
as $27,947.
a. Unadjusted cash account balance of $27,497 is listed on reconciliation
book balance.
Miscellaneous Expenses
Cash
Notes Receivable
Cash
Accts. Receivable – E. Shaw
3069
Cash
Collection Expense
bank statement cash balance and (ii) the adjusted cash account
For each of the following errors, explain the effect on (i) the adjusted
Problem 06-04A
McGraw-Hill/Irwin
Instructor
Deduct:
Book balance
Add:
Proceeds of note less collection charge
3031
BRANCH COMPANY
3065
Bank statement balance
Add:
Deposit of July 31
Total
Deduct:
Outstanding Checks:
Bank Reconciliation
Student Name:
Class:
Problem 06-04A
McGraw-Hill/Irwin
Instructor
statement cash balance on reconciliation.
a. (i) The final balance that results from adjusting the bank statement balance will not be
affected by the error; and (ii) The final balance that results from adjusting the book balance of
cash will be overstated by $450 ($27,947-$27,497), and the bank reconciliation will not
balance. b. (i) The final balance that results from adjusting the bank statement balance will be
overstated by $7,955; and (ii) The final balance that results from adjusting the book balance
will be understated by $7,955.
Student Name:
Class:
18,453.25$ 17,404.20$
1,682.75 12.50$
20,136.00 1,485.00 1,497.50
18,901.70
494.25$ 600.25
982.30 30.00
388.00 1,864.55 630.25
Cash
Interest Earned
Cash
Cash
Computer Equipment
Cash
Collection Expense
Notes Receivable
Accts. Rec.-S. Nilson
The bank statement reveals that some of the prenumbered checks in the sequence are missing.
Describe three situations that could explain this.
NSF check
Error on check no. 5904
Total
Book balance of cash
Add:
Interest earned
Proceeds of note less coll. fee
Deduct:
5906
5908
McGraw-Hill/Irwin
Instructor
Problem 06-05A
Bank statement balance
Add:
September 30, 2013
Deposit of September 30
Total
Deduct:
Checks No. 5893
Student Name:
Class:
McGraw-Hill/Irwin
Instructor
Problem 06-05A
There are several possible reasons why some prenumbered checks are missing from the sequence of
canceled checks returned with a bank statement. Reasons include: (1) Some of the checks in the numbered
sequence may have cleared the bank in a previous period and were returned with the bank statement in that
previous period. (2) Some of the checks in the numbered sequence may remain outstanding. If so, they will
be returned with the bank statement in a later period when they clear the bank. (3) The issuer of the checks
may have voided one or more of the checks in the numbered sequence, perhaps because of making an error
in writing the checks. (4) Occasionally, a check will reach the bank but the bank will incorrectly charge the
check to the wrong account. When the bank detects the error, it will return the check separately with a note of
explanation to the depositor.