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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This note was uploaded on 11/22/2011 for the course BUSI 1002 taught by Professor Liu during the Fall '10 term at HKU.

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

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