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| Prepare a bank reconciliation for Cole Co. assuming the following as of May 31. Use the worksheet provided in the Ch 7 Module: | | |
| | 1) | The company's cash account as a debit balance of: | | | | $95,250 |
| | 2) | The bank statement shows a balance of: | | | | | | $82,500 |
| | 3) | April 30 outstanding checks: | | | | | | | $11,317 |
| | 5) | A credit memorandum was received by the bank, but not recorded by Cole Co. by May 31 | | |
| | | a) Cash collected by the bank: | | | | | | $18,000 |
| | | b) Collection fee deducted by bank: | | | | | | $45 |
| | 6) | Check 1115 was written and drawn for $1,350 but was erroneously entered in the accounting | |
| | | records as $1,050. The check was for rent. | | | | | | |
| | 7) | May 31st daily cash sales were deposited but did not appear on the May 31 | | | | | | | |
| | | bank statement. | | | | | | | $41,750 |
| | 8) | Interest earned, but not recorded: | | | | | | | $28 |
The error in Check 1115 should be recognized as a reconciling item to the:
Both
Bank
Book
Neither
The "credit memorandum" ($18,000) and the corresponding "collection fee" is a reconciling item for:
Both
Neither
Book
Bank
The ending Book Balance is:
$124,250
$112,933
$95,250
$82,500
The journal entry to record the $300 error to check 1115 includes
DR Rent Expense
DR Accounts Payable
DR Cash
CR Rent Expense
The journal entry to record the $18,000 credit memorandum is:
DR Revenue, CR Cash
DR Cash, CR Revenue
DR Cash; CR Accounts Receivable
DR Accounts Receivable; CR Cash
Answer & Explanation
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