Problem 8-4B

Problem 8-4B - 19,000 To record note collection less fees...

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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 ......................................

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Unformatted text preview: 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 notification that the depositor's account has been credited, which means the bank has increased the depositor’s cash balance....
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