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Student Name:
Class:
27,233$ 27,497$
11,514 7,955
38,747 35,452
1,482$ NSF check 805$
382 Service charge 25
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 $7,955.
a.
27,497$
27,233$
b.
1,482$
558$
382$
2,281$
c.
1,250$
1,270$
d.
8,000$
45$
e.
795$
10$
f. 25$
g.
11,514$
27,497$
27,947$
34,602$
BRANCH COMPANY
Given Data P06-04A:
July 31, 2013
Cash balance
Bank statement balance
Outstanding checks:
No. 3031
No. 3040 (returned with July statement)
No. 3065
No. 3069
Check No. 3056 (rent pmt.):
Amount entered in books
Actual amount
Branch note collection:
Total collected by bank
Collection fee charged
Evan Shaw check:
Amount of NSF check
NSF charge by bank
Bank service charge
Deposit not yet credited by bank
Additional information for analysis:
(a) Unadjusted cash account balance
(1) Reconciled balance
Reported unadjusted cash account balance
(b) Note collection is added to bank statement
cash balance on reconciliation ($8,000 less
$45 collection fee)
Check figures:
Student Name:
Class:
18,453.25$ 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
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.
August 31 bank reconciliation:
Outstanding checks:
No. 5888 1,028.05$
No. 5893 494.25$
From the September 30 bank statement:
Previous balance 16,800.45$
Total Checks and Debits 9,620.05$
Total Deposits and Credits 11,272.85$
Current Balance 18,453.25$
Date Check Amount Date Amount
09/03 5888 1,028.05 08/31 16,800.45
09/04 5902 719.90 09/03 15,772.40
09/07 5901 1,824.25 09/04 15,052.50
09/17 NSF 600.25 09/05 16,156.25
09/20 5905 937.00 09/07 14,332.00
CHAVEZ COMPANY
Checks and Debits
Daily Balance
Given Data P06-05A:
Given Data P06-05A:
R12 11,458.10 26,736.25
D23 9,332.05 17,404.20
2,060.00$
2,090.00$
1,500.00$
15.00$
18,271.45$
1,500.00$
Correct amount of check
30 Total disbursements
Sept. 30 Total receipts
Entered in accounting records
Check No. 5904 for computer equipment:
(2) Credit Note Receivable
(1) Reconciled balance
Check figures:
Bank collection fee
Credit memorandum from bank
Collection of Note:
