New1 ACCT 2311 - ACCT.2311 E.5.1. Bankreconciliation

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT.  2311  E.5.1.  Bank reconciliation Prepare a bank reconciliation as of October 31, from the following information: a. October 31 cash balance in the general ledger is $844. b. The October 31 balance shown on the bank statement is $373. c. Checks issued but not returned with the bank statement were No. 462 for $13 and No. 483 for $50. d. A deposit made late on October 31 for $450 is included in the general ledger balance but not in the bank statement  balance. e. Returned with the bank statement was a notice that a customer’s check for $75 that was deposited on October 25  had been returned because the customer’s account was overdrawn. f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No.  471 was $65 but that in the company’s records supporting the general ledger balance, the check had been  erroneously recorded as a payment of an account payable in the amount of $56. Balance per bank………. .$373                    Balance per books………. .$844 Add: Deposit in transit   450                     Less: NSF check……………. .(75) Less: Outstanding checks                          Error in recording check ($13 + $50)……………….…($63)                  (as $56 instead of $65)…. .($9) Reconciled balance……. .$760                    Reconciled balance………. .$760 E.5.6. Allowance for Bad Debts Bad debt write-offs (during the year)……………………$23,000 1-1-09 balance………………. ..……$9,720 Bad debt expense………………. ..…    ?  12-31-09 balance……………. ........ $10,480 Adjustment required……………………? 12-31-09 balance, as Adjusted………………………….…$23,200
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. What was the total amount of bad debts expense recognized during the year? Bad debt expense = $23,900 - $9,720 + $10,480 = $24,660
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

New1 ACCT 2311 - ACCT.2311 E.5.1. Bankreconciliation

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online