The following data represents information necessary to assist in preparing the July 31, 2019 bank reconciliation for Domore Company. On July 31, the bank balance was $5,353. The bank statement indicated a deduction of $20 for all bank service charges. A customer deposited $1,210 directly into the bank account to settle an outstanding accounts receivable bill. Cheque #566 for $800 and cheque #573 for $560 have been recorded in the company ledger but did not appear on the bank statement. A customer paid an amount of $4,570 to Domore Company on July 31 but the deposit did not appear on the bank statement. The accounting clerk made an error and recorded a $150 cheque as $1,500. The cheque was written to pay an outstanding accounts payable account. Cheque #8603 for $170 was deducted from Domore Company's account by the bank. This cheque was not written by Domore Company and needs to be reversed by the bank. The bank included an NSF cheque in the amount of $490 relating to a customer’s payment. The NSF fee was $15. The general ledger cash account showed a balance of $6,698 on July 31. a) Complete the bank reconciliation for Domore Company. b) Write the necessary journal entries to correct Domore Company's records.
The following data represents information necessary to assist in preparing the July 31, 2019 bank reconciliation for Domore Company. On July 31, the bank balance was $5,353. The bank statement indicated a deduction of $20 for all bank service charges. A customer deposited $1,210 directly into the bank account to settle an outstanding accounts receivable bill. Cheque #566 for $800 and cheque #573 for $560 have been recorded in the company ledger but did not appear on the bank statement. A customer paid an amount of $4,570 to Domore Company on July 31 but the deposit did not appear on the bank statement. The accounting clerk made an error and recorded a $150 cheque as $1,500. The cheque was written to pay an outstanding accounts payable account. Cheque #8603 for $170 was deducted from Domore Company's account by the bank. This cheque was not written by Domore Company and needs to be reversed by the bank. The bank included an NSF cheque in the amount of $490 relating to a customer’s payment. The NSF fee was $15. The general ledger cash account showed a balance of $6,698 on July 31. a) Complete the bank reconciliation for Domore Company. b) Write the necessary journal entries to correct Domore Company's records.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 3BE
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The following data represents information necessary to assist in preparing the July 31, 2019 bank reconciliation for Domore Company.
| On July 31, the bank balance was $5,353. |
| The bank statement indicated a deduction of $20 for all bank service charges. |
| A customer deposited $1,210 directly into the bank account to settle an outstanding |
| Cheque #566 for $800 and cheque #573 for $560 have been recorded in the company ledger but did not appear on the bank statement. |
| A customer paid an amount of $4,570 to Domore Company on July 31 but the deposit did not appear on the bank statement. |
| The accounting clerk made an error and recorded a $150 cheque as $1,500. The cheque was written to pay an outstanding accounts payable account. |
| Cheque #8603 for $170 was deducted from Domore Company's account by the bank. This cheque was not written by Domore Company and needs to be reversed by the bank. |
| The bank included an NSF cheque in the amount of $490 relating to a customer’s payment. The NSF fee was $15. |
| The general ledger cash account showed a balance of $6,698 on July 31. |
a) Complete the bank reconciliation for Domore Company.
b) Write the necessary
Transcribed Image Text:Domore Company
Bank Reconciliation
July 31, 2019
Cash balance per bank
statement
5353
Cash balance per
v books
5353
Add
Add
Outstanding deposit
EFT deposit
Bank error
Ledger error
Deduct outstanding cheques
Deduct
Cheque #566
NSF cheque
Cheque #573
NSF service charge
Bank service charge
Adjusted book
Adjusted bank balance
balance
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