Question

190) The following information is available to reconcile Dibble Co.'s book balance of cash with its bank statement cash balance as of April 30. The April 30 cash balance according to the accounting records is $68,356, and the bank statement cash balance for that date is $73,525. a. The bank erroneously cleared a $480 check against the account in April that was not issued by Dibble. The check documentation included with the bank statement indicates the check was actually issued by Flushing Co. b. $53 interest earned on Dibble's cash balance in the bank is not yet recorded by Dibble. c. When the April checks are compared with entries in the accounting records, it is found that Check No. 1828 had been correctly drawn for $1,530 to pay for advertising but was erroneously entered in the accounting records as $1,350. d. The bank collected $9,970 cash on a note receivable for Dibble. Dibble did not record this transaction before receiving the statement. e. The bank statement includes an NSF check for $895 received from a customer. Dibble did not record this NSF check before receiving the statement. f. Dibble's April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30 bank statement. g. Dibble's April 30 cash payments journal indicates that Check No. 1837 for $584 and Check No. 1840 for $1,219 were both written and entered in the accounting records, but are not among the canceled checks. 1. Prepare the bank reconciliation for this company as of April 30. Answer: DIBBLE CO. Bank Reconciliation April 30 $68,356 Bank statement balance Add: $73,525 Book balance of cash Add: Deduct: Deduct:

Answer 1

Bank statement balance $ 68,356 Add: Wrongly cleared a check Deposit in transit DIBBLE CO. Bank Reconciliatin, April 30 $ 73,525 Book balance Add: $ 480 Interest earned $ 5,102 Collection of Note $ 79,107 Deduct: Error in recording Check No. 1828 $ 584 NFS check $ 1,219 $ $ $ 53 9,970 78,379 Deduct: Outstanding checks: # 1837 # 1840 $ $ 180 ($ 1,530 - $1,350) 895 Adjusted bank balance $ 77,304 Adjusted book balance $ 77,304