The cash account for Samson Supplies Co. at April 30, 2014, indicated a balance of $18,885. The
bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement
and the accompanying canceled cheques and memos with the records revealed the following
a) Cheques outstanding totaled $7,840
b) A deposit of $3,580, representing receipts on April 30, had been made too late to appear on
the bank statement.
c) The bank collected $3,780 on a note left for collection. The face of the note was $3,600.
d) A cheque for $770 returned with the statement had been incorrectly recorded by Samson
Supplies Co. as $700. The cheque was for the payment of an obligation to Copelin Co. for a
purchase on account.
e) A cheque drawn for $330 had been erroneously charged by the bank as $3,300.
f) Bank service charges for April amounted to $110.
a) Prepare a bank reconciliation statement for Samson Supplies Co., at April 30.
b) Journalize the necessary entries. Assume that the accounts have not been closed.
c) State the amount of cash that should be included in the balance sheet at April 30.
The cash transactions and cash balances of Banner Inc., for July were as follows:
i) The ledger account for Cash showed a balance at July 31 of $125,568
ii) The July bank statement showed a closing balance of $114,828.
iii) The cash received on July 31 amounted to $16,000. It was left at the bank in the night
depository chute after banking hours on July 31 and therefore was not recorded by the bank
on the July statement.
iv) Also included with the July bank statement was a debit memorandum from the bank
for $50 representing service charges for July.
v) A credit memorandum enclosed with the bank statement indicated that a non-interest
bearing note receivable for $4,000 from Rene Manes, left with the bank for collection, had
been collected and the proceeds credited to the account of Banner. Inc
vi) Comparison of the paid cheques returned by the bank with the entries in the
accounting records revealed that cheque no. 821 for $519, issued July 15 in payment for
office equipment, had been erroneously entered in Banner’s records as $915.
vii) Examination of the paid cheques also revealed that three cheques, all issued in July,
had not yet been paid by the bank: no.811 for $314; no.814 for $625; no. 823 for $175.
viii) Included with the July statement was a $200 cheque drawn by Howard Williams, a
customer of Banner. Inc., This cheque was marked “NSF.” It had been included in the
deposit of July 27 but had been charged back against the company’s account on July 31.
a) Prepare a bank reconciliation statement for Banner. Inc., at July 31.
b) Prepare the journal entries necessary to bring the company’s book balance of cash in
conformity with the reconciled cash balance as of July 31. Assume that the accounts have not
c) State the amount of cash that should be included in the balance sheet at July 31.
d) Explain why the balance as per the bank statement is often larger than the balance shown
in its accounting records.
The following information is available for Andersen Company for the month ending June 30, 2013.
• Balance per the bank statement is $10,241.43.
• Balance per books is $9,745.06.
• Check #506 for $1,948.52 and check #510 for $1,800.25 were not returned with the June 30
• A deposit in transit of $5,113.40 had not been received by the bank when the bank
statement was generated.
• A bank debit memo indicated an NSF check in the amount of $79 written by Bruce Garrett to
Andersen Company on June 13.
• A bank credit memo indicated a note collected by the bank of $1,900 and interest revenue
of $75 on June 20.
• The bank statement indicated service charges of $35.
Prepare a bank reconciliation for Andersen Company for June 30, 2013