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P8-4B[1] - Problem 8-4B(30 minutes Part 1 GARDENIA CO Bank...

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Problem 8-4B (30 minutes) Part 1 GARDENIA CO. Bank Reconciliation December 31, 2009 Bank statement balance .............. $26,379 Book balance ................................ $13,599 Add Add Deposit of Dec. 31 ....................... 10,652 Error (Ck 1267) .... $ 90 37,031 Proceeds of note less $20 fee ........ 18,986 19,076 32,675 Deduct Deduct Checks No. 1242 ..... $ 2,568 NSF check ............ 805 1273 ..... 1,800 Printing fee ........... 99 1282 ..... 892 5,260 904 Adjusted bank balance ................. $31,771 Adjusted book balance .............. $31,771 Part 2 Dec. 31 Cash ..................................................................... 90 Office Supplies ............................................. 90 To correct an entry error on Check 1267. 31 Cash ..................................................................... 18,986 Collection Expense ............................................ 14 Notes Receivable .......................................... 19,000 To record note collection less fees. 31 Accounts Receivable Millard Industries ........ 805 Cash ............................................................... 805 To charge account for NSF check plus fees. 31 Miscellaneous Expenses ................................... 99 Cash ............................................................... 99 To record check printing charge. Part 3 In a banking context, a debit memo is notification from the bank that it has debited the depositor's account. Since the depositor's account is a liability of the bank (a credit balance account), the debit notification means the bank has reduced the depositor's account balance. Conversely, a credit memo is a
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