29) C.D. Lee was preparing the monthly bank reconciliation for WhackCo when he noticed the bank made an error in the company’s favor. How should the error appear on the bank reconciliation? Discuss the ethical issue of not reporting this error to the bank.
30) Prepare the June bank reconciliation for Low Company using the reconciling items below. The cash balance for Low Company was $8,110. The balance on the bank statement was $12,505.
a. $50 bank service charge
b. $4,889 worth of outstanding checks
c. $118 check for insufficient funds returned by the bank
d. Low Company deposited $576 worth of checks that are not on the bank statement.
e. The bank collected a note receivable for Low Company worth $275.
f. The bank charged Low Company $25 to collect the note receivable.
Low Company
Bank Reconciliation
June 30, 2012
Bank Balance$12,505Book Balance$ 8,110
Add:Add:
Deduct:Deduct:
31) Prepare Gloria’s Glassware’s November bank reconciliation. Below is a list of items that will be included in the reconciliation. The balance on the bank statement was $12,575. The cash balance for Gloria’s Glassware was $11,483.
a. Gloria’s Glassware correctly deposited a check for $87. The bank recorded the check for $78.
b. Gloria’s Glassware incorrectly recorded a deposit as $143. The bank correctly recorded the check for $134.
c. Bank service charges for the month were $45.
d. $1,555 worth of checks was outstanding.
e. A deposit of $400 was mailed to the bank, but has not been recorded by the bank.
Gloria's Glassware
Bank Reconciliation
November 30, 2012
Bank Balance$12,575Book Balance$11,483
Add:Add:
Deduct:Deduct:
32)
Part A:
Use the following information to complete the May bank reconciliation for AceCo:
From the company’s records:
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From the May bank statement:
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May 31 cash balance
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$10,053.57
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May 31 cash balance
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$9,550.48
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Outstanding checks
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1,876.67
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NSF check from A. Lowe
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359.37
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Deposits in transit
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2,020.39
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AceCo
Bank Reconciliation
May 31, 2012
Balance per bank statement,Balance per books,
May 31May 31
Add:Add:
Deduct:Deduct:
Adjusted balance,Adjusted balance,
May 31May 31
Part B:
What amount will AceCo show for cash on its May 31 balance sheet?
Part C:
For which item(s) must AceCo prepare an adjusting entry?