Question 2 (Total: 29 marks)
Part I (19 marks) _()
Success Company received its 31 December 2023 bank statement which showed a balance of $22,041. At 31 December 2023, Success Company's Cash account balance was $29,950. The Finance Manager collected the following supplementary information for the month of December 2023.
(1) A check $21,027 was posted to bank on 31 December 2023. It was not reached the bank before the banking hours on 31 December 2023 and therefore was not recorded by the bank on the December statement.
(2) Service charge by bank is $520.
(3) The bank has collected an amount of $30,000 and directly credited to Success's account, which represents an interest-free note receivable due on 15 December 2023.
(4) Success issued a check no. 265020 , being payment of $21,940 supplies, correctly written in the amount of $21,940 but erroneously recorded in Success's accounting records as $21,490.
(5) A $5,000 deposit by Excess Company was incorrectly credited to Success's account by the bank.
(6) The total amount of checks written by Success Company in December 2023 was $76,500 whereas the total checks cleared by the bank during December was $71,712. No outstanding checks were carried over from November.
(7) A check for $26,000 by a customer, Mr. Chan, was deducted from Success's account by the bank and returned with the notation "NSF."
(8) The bank statement showed $300 interest earned on the bank balance for the month of December.
Required:
(a) Prepare the bank reconciliation for Success Company as of 31 December 2023. (12 marks)
(b) Prepare any journal entries that should be made as a result of the bank reconciliation. (7 marks)
Question 2 (Total: 29 marks)
Part I (19 marks)
Success Company received its 31 December 2023 bank statement which showed a balance of $22,041 At 31 December 2023, Success Company's Cash account balance was $29,950. The Finance Manager collected the following supplementary information for the month of December 2023.
(1)
A check $21,027 was posted to bank on 31 December 2023. It was not reached the bank before the banking hours on 31 December 2023 and therefore was not recorded by the bank on the December statement.
(2)
Service charge by bank is $520.
(3)
The bank has collected an amount of $30,000 and directly credited to Success's account. which represents an interest-free note receivable due on 15 December 2023.
(4)
Success issued a check no. 265020, being payment of $21,940 supplies, correctly written in the amount of $21,940 but erroneously recorded in Success's accounting records as $21,490
(5)
A $5,000 deposit by Excess Company was incorrectly credited to Success's account by the bank.
(6)
The total amount of checks written by Success Company in December 2023 was $76,500 whereas the total checks cleared by the bank during December was $71,712. No outstanding checks were carried over from November.
(7)
A check for $26,000 by a customer,Mr. Chan,was deducted from Success's account by the bank and returned with the notation "NSF.
(8)
The bank statement showed $300 interest earned on the bank balance for the month of December.
Required:
(a)
Prepare the bank reconciliation for Success Company as of 31 December 2023. (12 marks)
(b)
Prepare any journal entries that should be made as a result of the bank reconciliation. (7 marks)
