Question

How would you do the general journal adjusting entries for this?

Bank Reconciliation The bank portion of the bank reconciliation for Hilo Company at November 30 was as follows. It agreed with the cash balance per books. The cash records per books for December showed the following: Cash Receipts Journal Date Amount Hilo Company Bank Reconciliation November 30 Cash balance per bank Add: Deposits in transit $14,367.90 2.530.20 16,898.10 Less: Outstanding checks Ck # Ck Amount 3451 $2,260.40 - 3470 720.10 3471 844.50 3472 1,426.80 3474 1,050.00 Adjusted cash balance per bank Cash Payments Journal Date Check Amount 120/1 3475 $ 1,640.70 12/02 3476 1,300.00 12/02 3477 2,130.00 12/04 3478 538.20 12/08 3479 3,080.00 12/10 3480 600.00 12/17 3481 807.40 12/20 3482 475.50 12/22 3483 1,140.00 12/23 832.00 12/24 3485 450.80 12/30 3486 1.889.50 $14,884.10 12/03 12/07 12/15 12/20 12/25 12/28 12/30 12/31 $1,211.60 2,365.10 2,672.70 2,954.00 2,567.30 2,836.00 1,025.00 1.190.40 $16.822.10 Total 3484 6,301.80 $10,596.30 Total Bank Statement-December Checks Deposits The bank statement contained two memoranda: Qla,543.2 Date Number Amount Date Amount 1 A credit of $3,645 for the collection of a $3,500 note for Hilo Company plus interest of $160 and less a collection fee of $15. Hilo Company has not accrued any interest on the note. 2 A debit of $547.10 for an NSF check written by D. Lu, a customer. At December 31, the check had not been redeposited in the bank. 12/01 12/02 12/07 12/04 12/08 12/10 12/15 12/27 12/30 12/29 12/31 3451 3471 3472 3475 3476 3477 3479 3480 3482 3483 3485 $ 2,260.40 12/01 844.50 12/04 1,426.80 12/08 1,640.70 12/16 1,300.00 12/21 2,130.00 12/26 3,080.00 12/29 600.00 12/30 475.50Total 1,140.00 540.80 * $15438.70 $ 2,530.20 1,211.60 2,365.10 2,672.70 2,945.00 2,567.30 2,836.00 1,025.00 $18.152.90 At December 30, the cash balance per books was $12,534.30, and the cash balance per the bank statement was $20.180. The bank did not make any errors, but 2 errors were made by Hilo Company. Prepare-in pencil the bank reconciliation at December 31. Then journalize the adjusting entries. Remember your debits & credits! Post to the Cash account. What's its ending balance? $15, 533.20 $20,190

Answer 1

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Solution: Credit Debit 3,645 15 $ 3,500 $ 160 Format and Naming convention is not available, can be slightly different: Journal entries Date Account title and explaination Dec.31 Cash $ Bank Service charges or Misc charges $ Note Receivable Interest Revenue (To record the collection of note) Dec.31 Accounts Receivable (D. Lu) $ Cash (To record the NSF check) Dec.31 Accounts Payable (540.80-450.80) Cash (To record the correction of error) Dec.31 Accounts Receivable (2945-2954) Cash (To record the correction of error) 547.10 $ 547.10 $ 90