Exercises:PE 8-2A: Items on company’s bank statementThe following items may appear on a bank statement:1. EFT payment2. Note collected for company3. Bank correction of an error from recording a

$7,200 deposit as $2,7004. Service chargeIndicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.

PE 8-2B: Items on company’s bank statement.The following items may appear on a bank statement:1. EFT check2. Bank correction of an error from posting

another customer’s check to the company’s account.

3. Loan proceeds4. EFT depositIndicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the balance of the company’s account.

BE 8-3A: Bank reconciliation:The following data were gathered to use in reconciling the bank account of a company:

Balance per bank $25,500Balance per company records $27,475Bank service charges 75Deposit in transit 7,500NSF check 3,400Outstanding checks 9,000

A) What is the adjusted balance on the bank reconciliation?

B) Journalize any necessary entries for the company based on the bank reconciliation.

BE 8-3B: Bank reconciliation:The following data were gathered to use in reconciling the bank account of a company:

Balance per bank $17,400Balance per company records $5,765Bank service charges 125Deposit in transit 3,000Note collected by bank with $360 interest 9,360Outstanding checks 5,400

A) What is the adjusted balance on the bank reconciliation?

B) Journalize any necessary entries for the company based on the bank reconciliation.

PE 8-4A: Petty cash fundPrepare journal entries for each of the following:a. Issued a check to establish a petty cash

fund of $800b. The amount of cash in the petty cash

fund is $225. Issued a check to replenish the fund, based on the following summary of petty cash receipts: repair expense $450, and miscellaneous selling expense $75. Record any missing funds in the cash short and over account.

PE 8-4B: Petty cash fundPrepare journal entries for each of the following:a. Issued a check to establish a petty cash

fund of $750b. The amount of cash in the petty cash

fund is $325. Issued a check to replenish the fund, based on the following summary of petty cash receipts: store supplies $300, and miscellaneous selling expense $100. Record any missing funds in the cash short and over account.

EX 8-16 Bank reconciliationIdentify each of the following reconciling items:(non of the transactions reported by bank debit and credit memos have been recorded by the company)1) Bank service charges $1202) Check of a customer returned by bank to

company because of insufficient funds 4,2003) Check for $240 incorrectly recorded by the

company as $4204) Check for $1000 incorrectly charged by bank

as $10,0005) Deposit in transit $24,9506) Outstanding checks $18,1007) Note collected by bank $15,600

EX 8-18 Bank reconciliation1) Cash balance according to the company’s

records at July 31, $15,600.2) Cash balance according to the bank statement

at July 31, $16,230.3) Checks outstanding, $3,1804) Deposit in transit, not recorded by bank $2,9505) A check for $270 in payment of an account was

erroneously recorded in the check register as $720

6) Bank debit memo for service charges, $50

a. Prepare a bank reconciliationb. Must a bank reconciliation always balance

(reconcile)?

EX 8-22 Bank reconciliation Identify the errors in the following bank reconciliationAlma Co.

Bank reconciliation for the month ended Nov 20 2012Cash balance according to bank statement $12,090Add: outstanding checks: No.915 $850 No.960 $615 No.964 $850 No.965 $775 $3,090 = $15,180Deduct: deposit of Nov 30,not recorded by bank $4000Adjusted balance $11,180______________________________________________________________________ Cash balance according to company’s records $4,430Add: proceeds of note collected by bank: Principle $5,000 Interest $200 = $ 5,200 Service charges $30 = $ 5,230 = 9660Deduct: Check returned because of insufficient funds $1,100Error in recording Nov 23 deposit of $6100 as $1600 $4500 = 5,600Adjusted balance $4,060