Student Name:

Class:
Problem 08-04A

CLARK COMPANY
Bank Reconciliation
July 31, 2005

Bank statement balance

Add:
Deposit of July 31
Total
Deduct:
Outstanding Checks:
3031
3065
3069
Adjusted bank balance

Book balance
Add:
Proceeds of note less collection charge

Deduct:
NSF check
Service charge
Error (Check no. 3056)
Adjusted book balance

CLARK COMPANY
General Journal

Date Account Title Debit Credit

Jul 31 Cash
Collection Expense
Notes Receivable
31 Accts. Rec.-J. Shaw
Cash
31 Miscellaneous Expenses
Cash
31 Rent Expense
Cash
 Student Name:
Class:
Problem 08-04A

For each of the following errors, explain the effect on (i) the adjusted
bank statement cash balance and (ii) the adjusted cash account
book balance.
a. Unadjusted cash balance of $26,193 is listed on reconciliation
as $26,139.
b. Collection of $9,000 note less $45 collection fee is added to bank
statement cash balance on reconciliation.
Given Data P08-04A:

CLARK COMPANY

Cash balance $26,193

Bank statement balance 28,020
Outstanding checks:
No. 3031 1,380
No. 3040 (returned with July statement) 552
No. 3065 336
No. 3069 2,148
Check No. 3056 (rent pmt.):
Amount entered in books 1,230
Actual amount 1,250
Clark note collection:
Total collected by bank 9,000
Collection fee charged 45
Jim Shaw check:
Amount of NSF check 795
NSF charge by bank 10
Bank service charge 15
Deposit not yet credited by bank 10,152

Additional information for analysis:

(a) Unadjusted cash account balance $26,193
Reported unadjusted cash account balance 26,139
(b) Note collection is added to bank statement
cash balance on reconciliation ($9,000 less
$45 collection fee)

Check figures:
(1) Reconciled balance $34,308
(2) Credit Note Receivable 9,000
 Student Name:
Class:
Problem 08-05A

ELS COMPANY
Bank Reconciliation
September 30, 2005

Bank statement balance

Add:
Deposit of September 30
Total
Deduct:
Checks No. 5893
5906
5908
Adjusted bank balance

Book balance of cash

Add:
Interest earned
Proceeds of note less coll. fee
Deduct:
NSF check
Error on check no. 5904
Total
Adjusted book balance

ELS COMPANY
General Journal

Date Account Title Debit Credit

Sep 30 Cash
Interest Earned
30 Cash
Collection Expense
Notes Receivable
30 Accts. Rec.-S. Nilson
Cash
30 Computer Equipment
Cash
 Student Name:
Class:
Problem 08-05A

The bank statement reveals that some of the prenumbered checks in the sequence
Describe three situations that could explain this.
Given Data P08-05A:

ELS COMPANY

August 31 bank reconciliation:

Outstanding checks:
No. 5888 1,038.05
No. 5893 495.95

From the September 30 bank statement:

September 30 Bank Statement:

Previous balance 16,800.45

Total Checks and Debits 9,620.05
Total Deposits and Credits 11,182.85
Current Balance 18,363.25

Checks and Debits Daily Balance

Date Check Amount Date Amount
09/03 5888 1,038.05 8/31 16,800.45
09/04 5902 731.90 9/3 15,762.40
09/07 5901 1,824.25 9/4 15,030.50
09/17 NSF 588.25 9/5 16,134.25
09/20 5905 937.00 9/7 14,310.00
09/22 5903 399.10 9/12 16,536.90
09/22 5904 2,080.00 9/17 16,948.65
09/28 5907 213.85 9/20 15,011.65
09/29 5909 1,807.65 9/21 19,104.65
9/22 1,625.55
9/25 18,977.25
Deposits and Credits 9/28 18,763.40
Date Description Amount 9/29 16,955.75
09/05 Deposit 1,103.75 9/30 18,363.25
09/12 Deposit 2,226.90
09/21 Deposit 4,093.00
09/25 Deposit 2,351.70
09/30 Interest 2,250.00
09/30 Credit memo 1,385.00

From Els Company's Accounting Records:

Cash Receipts Deposited: Cash Disbursements:

Date Cash Debit Check No. Cash Credit

Sept. 5 1,103.75 5901 1,824.25
12 2,226.90 5902 731.90
21 4,093.00 5903 399.10
25 2,351.70 5904 2,050.00
30 1,582.75 5905 937.00
11,358.10 5906 859.30
5907 213.85
5908 276.00
5909 1,807.65
9,099.05
Given Data P08-05A:

Cash Acct. No. 101

Date ExplanationPR Debit Credit Balance
Aug. 31 Balance 15,278.15
Sept. 30 Total receipts 11,358.10 26,636.25
30 Total disbursements 9,099.05 17,537.20

Check No. 5904 for computer equipment:

Entered in accounting records 2,050.00
Correct amount of check 2,080.00

Collection of Note:
Credit memorandum from bank 1,400.00
Bank collection fee 15.00

Check figures:
(1) Reconciled balance $18,326
(2) Credit Note Receivable 1,400