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Answer_Keys_WEEK9

Answer_Keys_WEEK9 - Problem 8-5A(50 minutes Part 1 MADISON...

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Problem 8-5A (50 minutes) Part 1 MADISON COMPANY Bank Reconciliation September 30, 2009 Bank statement balance .......... $20,164 Book balance .................... ........................................ $19,020 Add Add Interest earned ........ $ 23 Deposit of Sept. 30 ................ 1,753 21,917 Proceeds of note less $22 fee .......... 1,618 1,641 20,661 Deduct Deduct Checks No. 5893 ........ $ 542 NSF check .............. 631 5906 ........ 1,003 Error (Check 5904)... 36 5908 ........ 378 1,923 667 Adjusted bank balance ............ $19,994 Adjusted book balance ...... $19,994 Part 2 Sept. 30 Cash ............................................................... 23 Interest Earned ....................................... 23 To record interest earned. 30 Cash ............................................................... 1,618 Collection Expense ...................................... 22 Notes Receivable .................................... 1,640 To record note collection less fee. 30 Accounts Receivable— S.Nilson ................ 631 Cash ......................................................... 631 To charge account for NSF check plus fee. 30 Computer Equipment ................................... 36 Cash ......................................................... 36 To correct an entry error.
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Problem 8-5A (Concluded) Part 3 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.
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