P4-3A
On July 31, 2010, Fenton Company had a cash balance per books of $6,140. The
statement from Jackson State Bank on that date showed a balance of $7,695.80. A
comparison of the bank statement with the cash account revealed the following
facts.
1.
The bank service charge for July was $25.
2.
The bank collected a note receivable of $1,500 for Fenton Company on July 15,
plus $30 of interest. The bank made a $10 charge for the collection. Fenton has
not accrued any interest on the note.
3.
The July 31 receipts of $1,193.30 were not included in the bank deposits for
July. These receipts were deposited by the company in a night deposit vault on
July 31.
4.
Company check No. 2480 issued to H. Coby, a creditor, for $384 that cleared the
bank in July was incorrectly entered in the cash payments journal on July 10
for $348.
5.
Checks outstanding on July 31 totaled $1,980.10.
6. On
July 31 the bank statement showed an NSF charge of $690 for a check received by
the company from P. Figura, a customer, on account.
Instructions
(a)
Prepare the bank reconciliation as of July 31.
(b)
Prepare the necessary adjusting entries at July 31.
(a)
Cash bal. $6,909.00
PREVIEW [The Solution is done in EXCEL TEMPLATE]
PROBLEM 4-3A
(a)
FENTON COMPANY
Bank Reconciliation
31-Jul-10
Cash balance per bank
statement
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$7,695.80
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Add: Deposits in transit
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1,193.30
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8,889.10
|
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File
name:
P4-3A-Fenton-Company-.xls File
type:
application/vnd.ms-excel Price: $6
