Name Adam Twichell
BUS 152 - Test - Ch. 8-9 February 16, 2018
PROBLEMS
1) The cash account for EM Industries on July 31, 2017 indicated a balance of $11,135.
The July bank statement indicated an ending balance of $11,237. Comparing the bank
statement, the canceled checks, and the accompanying memos with the records
revealed the following reconciling items:
a. Checks outstanding for $287
b. A deposit of $4,250 had been made too late to appear on the bank
statement.
c. A check for $1,350 returned with the statement had been incorrectly
recorded as $1,315. The check was originally issued to pay on account.
d. The bank collected $5,000 plus $120 interest on a note.
e. Bank service charges for July amounted to $20.
f. A check for $1000 was returned by the bank because of insufficient
funds.
a) Prepare a bank reconciliation as of July 31, 2017. If errors in recording
deposits or checks are discovered, assume that the errors were made by the
company. Assume all deposits are from cash sales. All checks are written to
satisfy accounts payable.
b) Journalize the necessary entries.
2) Journalize the following transactions:
a) The actual cash received during the week ended January 16 for cash sales was $7,4
and the amount indicated by the cash register total was $7,413.
b) The actual cash received during the week ended January 31 for cash sales was
$23,447.00 and the amount indicated by the cash register total was $23,457.00.
