P7.

5 The bank portion of the bank reconciliation for Shou Florists at November 30, 2020, was as
follows (amounts in thousands).

Shou Florists
Bank Reconciliation
November 30,2020
Cash balance per bank
Add: Deposits in transit

Less: Outstanding checks

Check Number Check Amount
3451 HK$ 2,260.40
3470 HK$ 720.10
3471 HK$ 844.50
3472 HK$ 1,426.80
3474 HK$ 1,050.00
Adjusted cash balance per bank

The adjusted cash balance per bank agreed with the cash balance per books at November 30.
The December bank statement showed the following checks and deposits.

Bank Statement
Checks
Date Number Amount
12-01 3451 HK$ 2,260.40
12-02 3471 HK$ 844.50
12-07 3472 HK$ 1,426.80
12-04 3475 HK$ 1,640.70
12-08 3476 HK$ 1,300.00
12-10 3477 HK$ 2,130.00
12-15 3479 HK$ 3,080.00
27-12 3480 HK$ 600.00
12-30 3482 HK$ 475.50
12-29 3483 HK$ 1,140.00
12-31 3485 HK$ 540.80
Total HK$ 15,438.70

The cash records per books for December showed the following.
Cash Payments Journal
Date Number Amount
 12-01 3475 HK$ 1,640.70
12-02 3476 HK$ 1,300.00
12-02 3477 HK$ 2,130.00
12-04 3478 HK$ 621.30
12-08 3479 HK$ 3,080.00
12-10 3480 HK$ 600.00
12-17 3481 HK$ 807.40
12-20 3482 HK$ 475.50
12-22 3483 HK$ 1,140.00
12-23 3484 HK$ 798.00
12-24 3485 HK$ 450.80
12-30 3486 HK$ 889.50
Total HK$ 13,933.20

The bank statement contained two memoranda:

1. A credit of HK$2.242 for the collection of Shou Florists of an electronic funds transfer.
2. A debit for the printing of additional company checks HK$85.
At December 31, the cash balance per books was HK$13.985,20, and the cash balance per the ban
statement was HK$19.239,10. The Bank did not make any errors, but Shou Florists made two err

Instructions
a. Using the steps in the reconciliation procedure described in the chapter, prepare a bank
reconciliaion at December 31,2020
Answer :

SHOU FLORISTS
Bank Reconcilitaion
December 31,2020
Cash balance per bank statement
Add: Deposit in transit

Less: Outstanding Checks

Check Number Check Amount
3486 HK$ 889.50
3484 HK$ 798.00
3481 HK$ 807.40
3478 HK$ 621.30
3474 HK$ 1,050.00
3470 HK$ 720.10

Adjusted cash balance per bank

Cash balance per books

Add: Electronik funds transfer
 Less :
Check printing charge HK$ 85.00
Eror in recording check HK$ 90.00
Eror in recording deposit HK$ 9.00

Adjusted cash balance per books

b. Prepare the adjusting entries based on the reconciliation.

Answer :

SHOU FLORISTS
Adjusting Entries
December 31, 2020
Date Account Tittle and Explanation Debit
31-Dec Cash HK$ 2,242.00
Accounts Receivable
(To record receipt of electronic funds transfer)
Miscellaneous expense HK$ 85.00
Cash
(To record charge for printing company check)
Accounts Payable HK$ 90.00
Cash
(To correct error in recording check)
Accounts Receivable HK$ 9.00
Cash
(To correct error in deposit)
Totals HK$ 2,426.00
, 2020, was as P7.6 Timmins Grow-Fast spreads herbicides and a
May 31,2020, the company's Cash account pe
£6.738,90. The bank statement drom Manche

Checks and Debits

HK$ 14,367.90
HK$ 2,530.20
HK$ 16,898.10 A comparison of the details on the bank state
following facts
1. The statement included a debit memo
2. Cash sales of £883.15 on May 12 we
deposit slip were incorrectly made fo
amount.
3. Outstanding checks at May 31 totaled
4. On May 18, the company issued chec
HK$ 6,301.80 cleared the bank in May, was incorre
HK$ 10,596.30 5. £2,690 was collected by the bank for
6. Included with the canceled checks wa
oks at November 30. incorrectly charged to Timmins by th
7. On May 31, the bank statement show
a customer, to Timmins on account.

Deposits Instructions
Date Amount a. Prepare the bank reconcilitaion at Ma
12-01 HK$ 2,530.20 Answer :
12-04 HK$ 1,211.60
12-08 HK$ 2,365.10
12-16 HK$ 2,672.70
12-21 HK$ 2,945.00
12-26 HK$ 2,567.30 Cash balance per bank statement
12-29 HK$ 2,836.00 Add:
12-30 HK$ 1,025.00
Total HK$ 18,152.90

Less :

Adjusted cash balance per bank

Cash Receipts Journal Cash balance per books

Date Amount Add: Electronik funds transfer
 12-03 HK$ 1,211.60
12-07 HK$ 2,365.10
12-15 HK$ 2,672.70 Less :
12-20 HK$ 2,954.00
12-25 HK$ 2,567.30
12-28 HK$ 2,836.00
12-30 HK$ 1,025.00
12-31 HK$ 1,690.40
Total HK$ 17,322.10 Adjusted cash balance per books

b. Prepare the necessary adjusting entrie

Answer :

TIMM
nic funds transfer. A

e cash balance per the bank Date

ou Florists made two errors. 31-May

e chapter, prepare a bank

TS
aion
020
HK$ 19,239.10
HK$ 1,690.40
HK$ 20,929.50

Totals

HK$ 4,886.30
HK$ 16,043.20

HK$ 13,985.20
HK$ 2,242.00
HK$ 16,227.20
 HK$ 184.00
HK$ 16,043.20

Credit

HK$ 2,242.00
fer)

HK$ 85.00
eck)

HK$ 90.00

HK$ 9.00

HK$ 2,426.00
Grow-Fast spreads herbicides and applies liquid fertilizer for local farmers. On
20, the company's Cash account per its general ledger showed a balance of
The bank statement drom Manchester Bank on that date showed the following balance.

MANCHESTER BANK
Deposits and Credits

son of the details on the bank statement with the details in the Cash account revealed the

e statement included a debit memo of £40 for the printing of additional company checks.
sh sales of £883.15 on May 12 were deposited in the bank. The cash receipts entry and the
posit slip were incorrectly made for £933.15. The bank credited Timmins for the correct

utstanding checks at May 31 totaled £276.25, and deposits in transit were £1,880.15
n May 18, the company issued check No. 1181 for £685 to H. Moses, on account. The check, which
eared the bank in May, was incorrectly journalized and posted by Timmins for £658.
,690 was collected by the bank for Timmins on May 31 through electronic funds transfer.
cluded with the canceled checks was a check issued by Tomins to C. Pernod for £360 that was
correctly charged to Timmins by the bank.
n May 31, the bank statement showed an NSF charge of £380 for a check issued by Sara Ballard,
customer, to Timmins on account.

epare the bank reconcilitaion at May 31,2020.

TIMMINS GROW-FAST
Bank Reconcilitaion
May 31,2020
sh balance per bank statement £ 6,968.00

Deposit in transit £ 1,880.15

Bank error - Tomins £ 360.00
£ 9,208.15

Outstanding checks £ 276.25

djusted cash balance per bank £ 8,931.90

sh balance per books £ 6,738.90

dd: Electronik funds transfer £ 2,690.00
 £ 9,428.90

NSF check £ 380.00

Check printing charge £ 40.00
Eror in recording check £ 27.00
Eror in recording deposit £ 50.00
£ 497.00
djusted cash balance per books £ 8,931.90

epare the necessary adjusting entries for Timmins at May 31,2020.

TIMMINS GROW-FAST
Adjusting Entries
May 31, 2020
Account Tittle and Explanation Debit Credit
Cash HK$ 2,690.00
Accounts Receivable HK$ 2,690.00
(To record receipt of electronic funds transfer)
Accounts Receivable HK$ 380.00
Cash HK$ 380.00
(To record NSF check)
Miscellaneous expense £ 40.00
Cash £ 40.00
(To record charge for printing company check)
Accounts Payable HK$ 27.00
Cash HK$ 27.00
(To correct error in recording check)
Accounts Receivable HK$ 50.00
Cash HK$ 50.00
(To correct error in deposit)
Totals HK$ 3,187.00 HK$ 3,187.00
 Daily Balance
31-May £ 6,968.00