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    Bank Reconciliation & Adjusting Entries

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    Bank Reconciliation & Adjusting Entries.

    Name: Date:
    Instructor: Course:
    Financial Accounting, 5th Edition, by Weygandt, Kieso, and Kimmel
    Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse

    Problem P8-3A, Agricultural Genetics Company of Lawrence, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2006, the company's cash account per its general ledger showed the following balance.

    Date: Explanation: Ref: Debit: Credit: Balance:
    May 31 Balance 6,781.50

    The bank statement from Lawrence State Bank on that date showed the following balance.
    Lawrence State Bank
    Checks and Debits Deposits and Credits Daily Balance
    May 31 6,804.60

    A comparison of the details on the bank statement with the details in the cash account revealed the following facts.
    1. The statement included a debit memo of $40.00 for the printing of additional company checks.
    2. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were
    incorrectly made for $846.15 The bank credited Agricultural Genetics Company for the correct amount.
    3. Outstanding checks at May 31 totaled $315.25 and deposits in transit were $936.15
    4. On May 18, the company issued check no. 1181 for $685.00 to M. Datz on account. The check which cleared the bank
    in May, was incorrectly journalized and posted by Agricultural Genetics Company for $658.00
    5. A $2,000.00 note receivable was collected by the bank for Agricultural Genetics Company on May 31 plus $80.00
    interest. The bank charged a collection fee of $25.00 No interest has been accrued on the note.
    6. Included with the cancelled checks was a check issued by Bohr Company to Fred Mertz for $600.00 that was incorrectly
    charged to Agricultural Genetics Company by the bank.
    7. On May 31, the bank statement showed an NSF charge of $734.00 for a check issued by Tyler Gricius, a customer, to
    Agricultural Genetics Company.

    Instructions:
    (a) Prepare the bank reconciliation at May 31, 2006.

    AGRICULTURAL GENETICS COMPANY
    Bank Reconciliation
    May 31, 2006
    Cash balance per bank statement Amount
    Add: Amount
    Amount Formula
    Formula
    Less: Amount
    Adjusted cash balance per bank Formula

    Cash balance per books Amount
    Add:
    Amount
    Formula
    Less: Amount
    Amount
    Amount
    Amount Formula
    Adjusted cash balance per books Formula

    (b) Prepare the necessary adjusting entries for Agricultural Genetics Company at May 31, 2006.

    May 31 Account title Amount
    Account title Amount
    Account title Amount
    Account title Amount

    Account title Amount
    Account title Amount

    Account title Amount
    Account title Amount

    Account title Amount
    Account title Amount

    Account title Amount
    Account title Amount

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    Solution Preview

    Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
    Problem P8-3A, Agricultural Genetics Company of Lawrence, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2006, the company's cash account per its general ledger showed the following balance.

    Date: Explanation: Ref: Debit: Credit: Balance:
    May 31 Balance 6,781.50

    The bank statement from Lawrence State Bank on that date showed the following balance.
    Lawrence State Bank
    Checks and Debits Deposits and Credits Daily Balance
    May 31 6,804.60

    A comparison of the details on the bank statement with the details in the cash account revealed the following facts.
    1. The statement included a debit memo ...

    Solution Summary

    This solution is comprised of a Bank Reconciliation & Adjusting Entries for Agricultural Genetics Company of Lawrence, Kansas.

    $2.19

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