The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company’s records at July 31, $49,910. 2. Cash balance according to the bank statement at July 31, $48,250. 3. Checks outstanding, $4,460. 4. Deposit in transit, not recorded by bank, $6,450. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. Required: Journalize the entry or entries that should be made by the company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July: 1. Cash balance according to the company’s records at July 31, $49,910. 2. Cash balance according to the bank statement at July 31, $48,250. 3. Checks outstanding, $4,460. 4. Deposit in transit, not recorded by bank, $6,450. 5. A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $30. Required: Journalize the entry or entries that should be made by the company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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Question
The following data were accumulated for use in reconciling the bank account of Nakajima Co. for July:
1. | Cash balance according to the company’s records at July 31, $49,910. |
2. | Cash balance according to the bank statement at July 31, $48,250. |
3. | Checks outstanding, $4,460. |
4. | Deposit in transit, not recorded by bank, $6,450. |
5. | A check for $590 issued in payment of an account was erroneously recorded in the check register as $950. |
6. | Bank debit memo for service charges, $30. |
Required:
CHART OF ACCOUNTSNakajima Co.General Ledger
ASSETS | |
110 | Cash |
111 | Petty Cash |
120 | Accounts Receivable |
131 | Notes Receivable |
132 | Interest Receivable |
141 | Merchandise Inventory |
145 | Office Supplies |
146 | Store Supplies |
151 | Prepaid Insurance |
181 | Land |
191 | Office Equipment |
192 | |
193 | Store Equipment |
194 | Accumulated Depreciation-Store Equipment |
LIABILITIES | |
210 | Accounts Payable |
221 | Notes Payable |
222 | Interest Payable |
231 | Salaries Payable |
241 | Sales Tax Payable |
EQUITY | |
310 | Owner, Capital |
311 | Owner, Drawing |
REVENUE | |
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
510 | Cost of Merchandise Sold |
515 | Credit Card Expense |
516 | Cash Short and Over |
520 | Salaries Expense |
531 | Advertising Expense |
532 | Delivery Expense |
533 | Insurance Expense |
534 | Office Supplies Expense |
535 | Rent Expense |
536 | Repairs Expense |
537 | Selling Expenses |
538 | Store Supplies Expense |
561 | Depreciation Expense-Office Equipment |
562 | Depreciation Expense-Store Equipment |
590 | Miscellaneous Expense |
710 | Interest Expense |
Journalize the entry or entries that should be made by the company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 1
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