Exercise 4-19A, Obj. 3
Prepare a bank reconciliation
F.L. Hardy’s checkbook lists the following:
Date Check No. Item Check Deposit Balance
Oct. 1 515$
4622 Landry’s Café 25$ 490
9 Dividends received 125$ 615
13 623 City Tire Co. 160 455
14 624 Jiffy Lube 68 387
18 625 Cash 65 322
26 626 Shalom Baptist Church 75 247
28 627 Greenside Apartments 175 72
31 Paycheck 1225 1,297
The October bank statement shows
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $515
Add: Deposits . . . . . . . . . . . . . . . . . . . . . . . 125
Deduct checks: No.
Amount
622 25$
623 160
624 86 *
625 65 (336)$
Other charges:
NSF check . . . . . . . . . . . . . . . . . . . . . .
20$
Service charge . . . . . . . . . . . . . . . . . .
5 (25)$
Balance . . . . . . . . . . . . . . . . . . . . . . $279
*This is the correct amount for check number 624.
Financial Accounting
Student Name
Course Name
Student ID:
Date:
Students: Please fill-in areas that are shaded.
Use formulas as requested.
Exercise 4-19A
Instructions
Prepare Hardy’s’ bank reconciliation at October 31, 2017.
BANK:
Balance, October 31 279$
Add: Deposit in transit
Less: Outstanding checks:
Check No. Amount
–
Adjusted bank balance FORMULA
BOOKS:
Balance, October 31 1,297$
Less:
–
Adjusted book balance FORMULA
Enter description here
Test Your Knowledge
Enter description here (make sure to tell
what happened)
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Exercise 4-19A, Obj. 3
Prepare a bank reconciliation
F.L. Hardy’s checkbook lists the following:
Date Check No. Item Check Deposit Balance
Oct. 1 515$
4622 Landry’s Café 25$ 490
9 Dividends received 125$ 615
13 623 City Tire Co. 160 455
14 624 Jiffy Lube 68 387
18 625 Cash 65 322
26 626 Shalom Baptist Church 75 247
28 627 Greenside Apartments 175 72
31 Paycheck 1225 1,297
The October bank statement shows
Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $515
Add: Deposits . . . . . . . . . . . . . . . . . . . . . . . 125
Deduct checks: No.
Amount
622 25$
623 160
624 86 *
625 65 (336)$
Other charges:
NSF check . . . . . . . . . . . . . . . . . . . . . .
20$
Service charge . . . . . . . . . . . . . . . . . .
5 (25)$
Balance . . . . . . . . . . . . . . . . . . . . . . $279
*This is the correct amount for check number 624.
Student Name
Course Name
Student ID:
Date:
Financial Accounting
Students: Please fill-in areas that are shaded.
Use formulas as requested.
BU121 ID 503
Exercise 4-19A
Instructions
Prepare Hardy’s’ bank reconciliation at October 31, 2017.
BANK:
Balance, October 31 279$
Less: Outstanding checks:
Check No. Amount
626 75
Balance, October 31 1,297$
Test Your Knowledge
F.L. Hardy
Bank Reconciliation
October 31, 2017
BU121 ID 503
Add: Deposit in transit 1225
Exercise 4-24A, Obj. 5
Student Name
Course Name
Student ID:
Date:
Exercise 4-24A
Instructions:
Millions
Cash balance, October 31, 2017 65$
Budgeted cash receipts:
Collections from customers 11,283
Budgeted cash payments
Payments for cost of services and products
FORMULA
Cash available (needed) before financing
Budgeted cash balance, October 31, 2017 (78)
Cash available for additional investments, or
(New financing needed)
Byer Communications, Inc., is preparing its cash budget for the year ending December 31,
2017. Byer ended 2016 with cash of $65 million, and managers need to keep a cash balance
of at least $68 million for operations.
Financial Accounting
Students: Please fill-in areas that are shaded
light-yellow.
Construct and use a cash budget
Year Ended October 31, 2017
Explanation
Collections from customers are expected to total $11,283 million during 2017, and payments
for the cost of services and products should reach $6,194 million. Operating expense
payments are budgeted at $2,556 million.
During 2017, Byer expects to invest $1,823 million in new equipment and sell older assets for
$137 million. Debt payments scheduled for 2017 will total $564 million. The company
forecasts net income of $887 million for 2017 and plans to pay dividends of $325 million.
Test Your Knowledge
Prepare Byer Communications’ cash budget for 2017. Will the budgeted level of cash receipts
leave Byer with the desired ending cash balance of $68 million, or will the company need
additional financing? If so, how much?
Byer Communications, Inc.
Cash Budget
Exercise 4-24A, Obj. 5
Student Name
Course Name
Student ID:
Date:
Exercise 4-24A
Instructions:
Millions
Cash balance, October 31, 2017 65$
Budgeted cash receipts:
Collections from customers 11,283
Sale of Assets 137
Construct and use a cash budget
Test Your Knowledge
Byer Communications, Inc.
Cash Budget
Year Ended October 31, 2017
Financial Accounting
Byer Communications, Inc., is preparing its cash budget for the year ending December 31,
2017. Byer ended 2016 with cash of $65 million, and managers need to keep a cash balance
of at least $68 million for operations.
Collections from customers are expected to total $11,283 million during 2017, and payments
for the cost of services and products should reach $6,194 million. Operating expense
payments are budgeted at $2,556 million.
During 2017, Byer expects to invest $1,823 million in new equipment and sell older assets for
$137 million. Debt payments scheduled for 2017 will total $564 million. The company
forecasts net income of $887 million for 2017 and plans to pay dividends of $325 million.
Prepare Byer Communications’ cash budget for 2017. Will the budgeted level of cash receipts
leave Byer with the desired ending cash balance of $68 million, or will the company need
additional financing? If so, how much?
Students: Please fill-in areas that are shaded
light-yellow.
BU 122 ID 50003
Budgeted cash payments
Payments for cost of services and products 6,194$
Investment in equipment 1,823
Payment of debt 564
Payment of dividends 325 11,462
Cash available (needed) before financing 23
Budgeted cash balance, October 31, 2017 (68)
Cash available for additional investments, or
(New financing needed) (45)$
Problem 4-48A, Obj. 3
Student Name
Course Name
Student ID:
Date:
Item Jrnl. Ref Debit Credit Balance
June 1 Balance 7,430
30 CR6 9,478 16,928
30 CP11 10,397 6,531
Cash Debit Check No. Cash Credit
June 2 2,930$ 3113 1,509$
8 532 3114 1,869
10 1,696 3115 1,830
16 837 3116 87
22 355 3117 871
29 885 3118 149
30 2,243 3119 453
Total 9,478$ 3120 1,013
3121 208
3122 2,408
10,397$
The cash data of Dunlap Automotive for June 2016 follow:
Financial Accounting
Students: Please fill-in areas that are shaded
light-yellow.
Design and use a bank reconciliation
Cash
Date
Cash Receipts (CR)
Cash Payaments (CP)
Date
Dunlap Automotive received the following bank statement on June 30, 2016:
Beginning balance……………………………. 7,450$
Deposits and other additions:
Apr. 1…………………………… 625$ EFT
4………………………. 2,930
9………………………. 532
12………………………. 1,696
17………………………. 837
22………………………. 355
23………………………. 1,275 BC 8,250$
Checks and other deductions:
Apr. 7…………………………….. 1,509$
13………………………. 1,380
14………………………. 489 US
15………………………. 1,869
18………………………. 87
21………………………. 382 EFT
26………………………. 871
30………………………. 149
30………………………. 30 SC (6,766)$
Ending balance…………….……..…. 8,934$
Additional data for the bank reconciliation include the following:
a.
b. The unauthorized signature check was received from a customer.
c.
The EFT deposit was a receipt of monthly rent. The EFT debit was a monthly insurance
payment.
The correct amount of check number 3115, a payment on account, is $1,380. (Dunlap
Automotive’s accountant mistakenly recorded the check for $1,830.)
Bank Statement for June 2016
Explanation: EFT—electronic funds transfer, BC—bank collection, US—unauthorized signature,
SC—service charge.
Problem 4-48A, Obj. 3
Instructions:
1. Prepare the Dunlap Automotive bank reconciliation at June 30, 2016.
2.
Requirement 1
BANK:
Balance, June 30, 2016 7,450$
Add: Deposits in transit
Less: Outstanding checks –—
Check No.
FORMULA
Adjusted bank balance, June 30, 2016
BOOKS:
Balance, June 30, 2016 7,450$
Add:
FORMULA
FORMULA
Less:
FORMULA
Adjusted bank balance, June 30, 2016
Requirement 2
Describe how a bank account and the bank reconciliation help the general manager control
Durkin’s cash.
Dunlap Automotive
Bank Reconciliation
June 30, 2016
Book error – Enter explanation
Enter explanation here.
Test Your Knowledge
Solution Sat, Nov. 3, 2007
Problem 4-48A, Obj. 3
Student Name
Course Name
Student ID:
Date:
Item Jrnl. Ref Debit Credit Balance
June 1 Balance 7,430
30 CR6 9,478 16,928
Students: Please fill-in areas that are shaded
light-yellow.
Design and use a bank reconciliation
Financial Accounting
The cash data of Dunlap Automotive for June 2016 follow:
Date
Cash
BU 122 ID 50003
Date
Solution Sat, Nov. 3, 2007
Dunlap Automotive received the following bank statement on June 30, 2016:
Beginning balance……………………………. 7,450$
Deposits and other additions:
Apr. 1…………………………… 625$ EFT
4………………………. 2,930
9………………………. 532
12………………………. 1,696
17………………………. 837
22………………………. 355
23………………………. 1,275 BC 8,250$
Bank Statement for June 2016
BU 122 ID 50003
Solution Sat, Nov. 3, 2007
Problem 4-48A, Obj. 3
Instructions:
1. Prepare the Dunlap Automotive bank reconciliation at June 30, 2016.
2.
Requirement 1
BANK:
Balance, June 30, 2016 7,450$
Add: Deposits in transit 8,250
15,700
Less: Outstanding checks –—
Check No.
3119 453
Test Your Knowledge
Dunlap Automotive
Bank Reconciliation
Describe how a bank account and the bank reconciliation help the general manager control
Durkin’s cash.
June 30, 2016
BU 122 ID 50003
3121 208
BOOKS:
Balance, June 30, 2016 7,450$
Service charge 30 (901)