Financial Accounting
Lecture 7 – Tutorial Questions
Tutorial List:
7-1, 7-2, 7-3, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9
7.1. Kristen Hope asks your help concerning an NSF check. Explain to Kristen
(a) what an NSF check is,
(b) how it is treated in a bank reconciliation, and
(c) whether it will require an adjusting entry.
7.2. The bank portion of the bank reconciliation for Brasilia Company at October 31, 20X1 was as follows.
BRASILIA COMPANY
Bank Reconciliation October 31, 20X1
Cash balance per bank:
R$6,000
Add: Deposits in Transit
842
6,842
Check Number
Check Amount.
2451
R$700
2470
396
2471
464
2472
270
2474
578
2,408
Adjusted cash balance per bank
R$4,434
The adjusted cash balance per bank agreed with the cash balance per books at October 31.
The November bank statement showed the following checks and deposits.
7-2. (Continued)
The cash records per books for November showed the following.
The bank statement contained two bank memoranda:
1. A credit of R$1,375 for the collection of a R$1,300 note for Brasilia Company plus interest of R$91 and less a collection fee of R$16. Brasilia Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks R$34.
At November 30, the cash balance per books was R$5,959 and the cash balance per the bank statement was R$9,101. The bank did not make any errors, but two errors were made by Brasilia Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at November 30.
(b) Prepare the adjusting entries based on the reconciliation. (Hint: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors pertaining to recording cash receipts should be made to
Tutorial List:
7-1, 7-2, 7-3, 7-4, 7-5, 7-6, 7-7, 7-8, 7-9
7.1. Kristen Hope asks your help concerning an NSF check. Explain to Kristen
(a) what an NSF check is,
(b) how it is treated in a bank reconciliation, and
(c) whether it will require an adjusting entry.
7.2. The bank portion of the bank reconciliation for Brasilia Company at October 31, 20X1 was as follows.
BRASILIA COMPANY
Bank Reconciliation October 31, 20X1
Cash balance per bank:
R$6,000
Add: Deposits in Transit
842
6,842
Check Number
Check Amount.
2451
R$700
2470
396
2471
464
2472
270
2474
578
2,408
Adjusted cash balance per bank
R$4,434
The adjusted cash balance per bank agreed with the cash balance per books at October 31.
The November bank statement showed the following checks and deposits.
7-2. (Continued)
The cash records per books for November showed the following.
The bank statement contained two bank memoranda:
1. A credit of R$1,375 for the collection of a R$1,300 note for Brasilia Company plus interest of R$91 and less a collection fee of R$16. Brasilia Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks R$34.
At November 30, the cash balance per books was R$5,959 and the cash balance per the bank statement was R$9,101. The bank did not make any errors, but two errors were made by Brasilia Company.
Instructions
(a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at November 30.
(b) Prepare the adjusting entries based on the reconciliation. (Hint: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors pertaining to recording cash receipts should be made to