The following is information for the Bittman Company Ltd.:
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a. |
Balance per the bank statement for December 31, 2017 is $25,430. |
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b. |
Balance of the Cash account in the general ledger at December 31 is $11,040. |
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c. |
A cheque for $840 that had been deposited in the bank was incorrectly recorded in the general ledger as $930. |
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d. |
A cheque for $2,100 deposited on December 21 was returned by the bank marked NSF; no entry has been made on the company records to reflect the returned cheque. |
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e. |
Among the cancelled cheques is one for $345 given in payment of an account payable; the cheque has been recorded as $480 in the company records. |
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f. |
Bank service charges for December amount to $50. These were not yet recorded in the company records. |
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g. |
The bank erroneously charged the Bittman Company account for a $10,000 cheque of the Pittman Company. |
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h. |
The bank had collected a $15,000 note plus accrued interest amounting to $75; $15,075 was credited to Bittman’s account; a collection fee of $10 was debited to Bittman Company’s account. None of these transactions were recorded in the company records. |
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i. |
The bank deposit made December 3 for $1,570 does not appear on the bank statement |
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j. |
Outstanding cheques at December 31 were no. 197, $4,000, and no. 199, $9,000. |
Required:
- Prepare a bank reconciliation statement at December 31, 2017.
- Prepare the necessary adjusting journal entries to make the Cash account in the general ledger agree with the bank reconciliation adjusted cash balance at December 31.
- 1587 reads
