Bank Reconciliation and Entries

PROBLEM 1-CH7

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 11 - Homework Assignment (CH7)
Assignment due by Sunday, October 29, 2023
	PROBLEM 1 - Bank reconciliation and entries					(Obj. 5)
	The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank
	statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
		a. Checks outstanding totaled $19,427.
		b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.
		c. The bank collected $26,500 on a $25,000 note, including interest of $1,500.
		d. A check for $4,000 returned with the statement had been incorrectly reorded by Pala Medical Co. as $400. The check was for payment of an obligation to Skyline Supply Co.
		for a purchase on account.
		e. A check drawn for $195 had been erroneously charged by the bank as $915.
		f. Bank service charges for June amounted to $55.
	Instructions:
		1. Prepare a bank reconcilation.
		Pala Medical Co
		Bank Reconciliation
		June 30, 20Y5
		Cash balance according to bank statement				$ - 0
		Add: Deposit in transit on July 31			- 0
		Bank error (e.)			- 0
		Bank error in charging check	Total addition			- 0
		Deduct: Oustanding Checks				- 0
		Adjusted balance				$ - 0
		Cash balance according to company's records				$ - 0
		Add: Note collected by bank				- 0
		Deduct: Error in recording check (d.)			- 0
		Bank service charges			- 0
			Total deductions			- 0
		Adjusted balance				$ - 0
		2. Journalize the necessary entries.
		20Y1			Debit	Credit
		June	30	Cash	- 0	- 0
				Notes receivable	- 0	- 0
				Interest Revenue	- 0	- 0
			30	Accounts Payable-Skyline Supply Co	- 0	- 0
				Miscellaneous Expense	- 0	- 0
				Cash	- 0	- 0

PROBLEM 2-CH8

ACCT2301 PRINCIPLES OF ACCOUNTING I - Fall 2023
WEEK 11 - Homework Assignment (CH8)
Assignment due by Sunday, October 29, 2023
	PROBLEM 2 - Aging of receivables schedule (Obj.4)
	The accounts receivable clerk for Evers Industries prepared the following partially completed againg of receivables schedule as of the end of business on July 31:
			Aging of Receivables Schedule
			August 31
									Days Past Due
							Not Past								Over
			Customer		Balance		Due		1 - 30		31 - 60		61 - 90		90
			Acme Industries Inc.		$ 3,000		$ 3,000
			Alliance Company		4,500				$ 4,500
			Zollinger Company		5,000						5,000
			Subtotals		$ 1,050,000		$ 600,000		$ 220,000		$ 115,000		$ 85,000		$ 30,000
	The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
						Due Date
			Customer		Balance
			Boyd Industries		$ 36,000		April 7
			Hodges Company		11,500		May 29
			Kent Creek Inc.		6,600		June 8
			Lockwood Company		7,400		August 10
			Van Epps Company		13,000		July 2
	a.	Determine the number of days past due for each of the preceding accounts as of July 31.
						Number of Days Past Due
			Customer		Due Date
			Boyd Industries		April 7
			Hodges Company		May 29
			Kent Creek Inc.		June 8
			Lockwood Company		August 10
			Van Epps Company		July 2
	b.		Aging of Receivables Schedule
			August 31
									Days Past Due
							Not Past								Over
			Customer		Balance		Due		1 - 30		31 - 60		61 - 90		90
			Acme Industries Inc.		$ 3,000		$ 3,000
			Alliance Company		4,500				$ 4,500
			Zollinger Company		5,000						5,000
			Subtotals		$ 1,050,000		$ 600,000		$ 220,000		$ 115,000		$ 85,000		$ 30,000
			Boyd Industries		36,000		-		-		-		-		-
			Hodges Company		11,500		-		-		-		-		-
			Kent Creek Inc.		6,600		-		-		-		-		-
			Lockwood Company		7,400		-		-		-		-		-
			Van Epps Company		13,000		-		-		-		-		-
			Totals		$ 1,124,500		$ -		$ -		$ -		$ -		$ -