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Examination of the checks on the bank statement with

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• Examination of the checks on the bank statement with the entries in the accounting records revealsthat check #3445 for the payment of an account payable was correctly written for $2,450, but wasrecorded in the accounting records as $2,540.• Included with the bank statement was a debit memorandum in the amount of $25 for bank servicecharges.Required:Tierney CompanyBank ReconciliationAt November 30Updates to Bank StatementUpdates to Company's BooksEnding cash balance per bank statement$29,279Ending cash balance per books$27,202AdditionsAdditionsEFT received - customer770Deposit in transit1,675Error correction9030,95428,062DeductionsDeductionsOutstanding check #30301,525NSF check67Outstanding check #35561,459Bank service charges25Up-to-date ending cash balance$27,970Up-to-date ending cash balance$27,970AACSB: Analytical ThinkingAICPA: BB Critical ThinkingAICPA: FN MeasurementBlooms: ApplyDifficulty: 2 MediumLearning Objective: 05-04 Perform the key control of reconciling cash to bank statements.Phillips - Chapter 05 #178Source: Exclude LearnSmartTopic: Bank Reconciliation
179.Prepare the journal entries for the items that would appear on the company's bank reconciliation as ofNovember 30. (Do not prepare the bank reconciliation.)The following information is available for the Tierney Company for the month of November.• On November 30, after all transactions have been recorded, the balance in the company's Cashaccount has a balance of $27,202.• The company's bank statement shows a balance on November 30 of $29,279.• Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556in the amount of $1,459.• Included with the bank statement was a credit memo in the amount of $770 for an EFT in paymentof a customer's account.• The bank deducted $67 for an NSF check from a customer deposited on November 22.• A deposit placed in the bank's night depository on November 30 totaled $1,675 and did not appearon the bank statement.• Examination of the checks on the bank statement with the entries in the accounting records revealsthat check #3445 for the payment of an account payable was correctly written for $2,450, but wasrecorded in the accounting records as $2,540.• Included with the bank statement was a debit memorandum in the amount of $25 for bank servicecharges.Required:Nov. 30Cash770Accounts Receivable770Nov. 30Cash90Accounts Payable90Nov. 30Accounts Receivable67Cash67Nov. 30Miscellaneous Expense25Cash25AACSB: Analytical ThinkingAICPA: BB Critical ThinkingAICPA: FN MeasurementBlooms: ApplyDifficulty: 3 HardLearning Objective: 05-04 Perform the key control of reconciling cash to bank statements.Phillips - Chapter 05 #179Source: Exclude LearnSmartTopic: Bank Reconciliation
180.Part bPart a. Prepare a bank reconciliation as of September 30.Part b. Prepare the journal entries for the items on the company's bank reconciliation as of September30.

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Term
Summer
Professor
Jennifer Gibbs
Tags
independent cases

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