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A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts.

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Presentation on theme: "A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts."— Presentation transcript:

1 a sample problem

2 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 2

3 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 3

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10 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 10

11 © Copyright 2011 by M. Ray Gregg. All rights reserved. 11

12 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 12

13 Beginning Balance 14, © Copyright 2011 by M. Ray Gregg. All rights reserved. 13

14 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 14

15 Beginning Balance 19,913.90Beginning Balance 14, © Copyright 2011 by M. Ray Gregg. All rights reserved. 15

16 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 16

17 Beginning Balance 19,913.90Beginning Balance 14, (a) Outstanding checks 7, © Copyright 2011 by M. Ray Gregg. All rights reserved. 17

18 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 18

19 Beginning Balance 19, (b) Deposits in transit 4, Beginning Balance 14, (a) Outstanding checks 7,

20 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 20

21 Beginning Balance 19, (b) Deposits in transit 4, Beginning Balance 14, (c) Note and Interest 3, (a) Outstanding checks 7,

22 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 22

23 Beginning Balance 19, (b) Deposits in transit 4, Beginning Balance 14, (c) Note and Interest 3, (a) Outstanding checks 7,070.10(d) Printed checks

24 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 24

25 Beginning Balance 19, (b) Deposits in transit 4, Beginning Balance 14, (c) Note and Interest 3, (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks

26 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 26

27 Beginning Balance 19, (b) Deposits in transit 4, Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks

28 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 28

29 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks

30 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 30

31 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

32 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

33 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 33

34 © Copyright 2011 by M. Ray Gregg. All rights reserved. 34

35 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

36 © Copyright 2011 by M. Ray Gregg. All rights reserved. 36

37 © Copyright 2011 by M. Ray Gregg. All rights reserved. 37

38 © Copyright 2011 by M. Ray Gregg. All rights reserved. 38

39 © Copyright 2011 by M. Ray Gregg. All rights reserved. 39

40 © Copyright 2011 by M. Ray Gregg. All rights reserved. 40

41 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

42 © Copyright 2011 by M. Ray Gregg. All rights reserved. 42

43 © Copyright 2011 by M. Ray Gregg. All rights reserved. 43

44 © Copyright 2011 by M. Ray Gregg. All rights reserved. 44

45 © Copyright 2011 by M. Ray Gregg. All rights reserved. 45

46 © Copyright 2011 by M. Ray Gregg. All rights reserved. 46

47 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

48 © Copyright 2011 by M. Ray Gregg. All rights reserved. 48

49 © Copyright 2011 by M. Ray Gregg. All rights reserved. 49

50 © Copyright 2011 by M. Ray Gregg. All rights reserved. 50

51 © Copyright 2011 by M. Ray Gregg. All rights reserved. 51

52 © Copyright 2011 by M. Ray Gregg. All rights reserved. 52

53 © Copyright 2011 by M. Ray Gregg. All rights reserved. 53

54 © Copyright 2011 by M. Ray Gregg. All rights reserved. 54

55 Beginning Balance 19, (b) Deposits in transit 4, (g) Error in check Beginning Balance 14, (c) Note and Interest 3, (f) Error in check (a)Outstanding checks 7, (e) Error in deposit (d) Printed checks (h) Bank service charges

56 © Copyright 2011 by M. Ray Gregg. All rights reserved. 56

57 © Copyright 2011 by M. Ray Gregg. All rights reserved. 57

58 © Copyright 2011 by M. Ray Gregg. All rights reserved. 58

59 © Copyright 2011 by M. Ray Gregg. All rights reserved. 59

60 © Copyright 2011 by M. Ray Gregg. All rights reserved. 60

61 © Copyright 2011 by M. Ray Gregg. All rights reserved. 61

62 The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14, after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19, on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a)Checks outstanding totaled $7, b)A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c)The bank had collected $3,120 on an interest-bearing note left for collection. The face of the note was $3,000. d)The bank statement included a debit memo for printing costs for additional checks of $40. e)The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank credited the companys account for $552. f)A check for $69 returned with the statement had been recorded erroneously in the cash payments journal as $96. The check was for the payment for the purchase of office supplies on account. g)A check drawn for $24 had been erroneously charged by the bank as $42. h)Bank service charges for May amounted to $21.80 Instructions: 1.Prepare a bank reconciliation. 2.Record the necessary entries in general journal form. © Copyright 2011 by M. Ray Gregg. All rights reserved. 62

63 © Copyright 2011 by M. Ray Gregg. All rights reserved. 63

64 © Copyright 2011 by M. Ray Gregg. All rights reserved. 64

65 © Copyright 2011 by M. Ray Gregg. All rights reserved. 65

66 © Copyright 2011 by M. Ray Gregg. All rights reserved. 66

67 DateAccount TitleRef.DebitCredit 5/31Cash3, Notes Receivable3, Interest Revenue Accounts Payable

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70 © Copyright 2011 by M. Ray Gregg. All rights reserved. 70

71 © Copyright 2011 by M. Ray Gregg. All rights reserved. 71

72 © Copyright 2011 by M. Ray Gregg. All rights reserved. 72

73 © Copyright 2011 by M. Ray Gregg. All rights reserved. 73

74 © Copyright 2011 by M. Ray Gregg. All rights reserved. 74

75 © Copyright 2011 by M. Ray Gregg. All rights reserved. 75

76 a sample problem

77 © Copyright 2011 by M. Ray Gregg. All rights reserved. 77


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