Accountsguru

Problem 8-4

The following information is available to reconcile Bear Co. book balance of cash with its bank statement cash balance as of December 31, 2012:

a. After all posting is complete on December 31, the company’s Cash account has a debit balance, but its bank statement shows a

balance. b. Check No. for and check No. for , both

written and entered in the accounting records in December, are not among the canceled checks. Two checks, No. for and No. for

, were outstanding on the most recent November 30 reconciliation. Check No. is listed with the December canceled checks, but Check No. is not.

c. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. for November phone bill was correctly written and drawn for but was erroneously entered in the accounting records as .

d. The bank charged Bear for a safe-deposit box. Bear does not have a safe-deposit box.

e. A debit memorandum for lists a NSF check plus a NSF charge. The check had been received from Ima Bad Electrician. Bear has not yet recorded this check as NSF.

f. Enclosed with the statement is a debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g. The December 31 daily cash receipts of were placed in the bank’s night depository on that date but do not appear on the December 31 bank statement.

Required

1.  Prepare a bank reconciliation for this company as of December 31, 2008.

2.  Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of December 31, 2008.

Check (1) Reconciled balance, 26,753.00$

24,783.00$

50$

90$

7,500$

50$

925$ 875$

2372

2379

2372 375.50$

468.10$ 486.10$

2375 4,850.00$ 2377 280.00$

27,750.00$

2371

2371450.00$