184.Umber Company's bank reconciliation for September is presented below. Prepare the necessary adjusting journal entries based on the reconciliation report.
UMBER COMPANY
Bank Reconciliation
September 30
Bank statement balance$1,350Book balance of cash$995
Add:Add:
Deposit in transit1,250Proceeds of note900
Bank error275Less note collection fee25875
$2,8751,870
Deduct:Deduct:
Outstanding checks1,145NSF check plus processing fee125
Bank service charge15
Reconciled balance$1,730Reconciled balance$1,730
185.The following information is available for the Victor Company for its March 31 bank reconciliation:
From the March 31 bank statement:
Previous BalanceTotal Checks and
DebitsTotal Deposits and Credits
Current Balance
$9,908$7,805$11,905$14,008
Checks and DebitsDeposits and CreditsDaily Balance
DateNo.AmountDateAmountDateAmount
03/0328741,21003/024,34003/019,908
03/1129063,85003/277,27003/0214,248
03/15290517003/31295IN03/031,038
03/25290972503/119,188
03/2929081,35003/159,018
03/30500NSF03/258,293
03/2715,563
03/2914,213
03/3013,713
03/3114,008
NSF: A check from a customer, Booker Co. in payment of their account.
IN: Interest earned on the account.
From the Victor Company's accounting records:
31Total disbursementsD56,89515,503
1. Based on the above information, prepare a bank reconciliation for the Victor Company.
2. Prepare the necessary general journal entries to adjust cash to the reconciled balance.
186.On June 3, Zhang Co. received and recorded a $3,500 invoice for merchandise on which the terms were 2/10, n/60. The company uses the net method to records invoices. On June 17, the company discovered that the invoice had been incorrectly filed and the discount lost. Prepare the June 3 general journal entry to record the purchase, the June 17 entry to record the discount lost, and the August 2 entry to record payment of the invoice.