Marden Co._Bank Reconciliation Statement

| October 22, 2018

On August 10, Marden Co. received its statement from Last National Bank for its checking account. The statement showed all transactions recorded by the bank for the period of July 1 through July 31. The general ledger account can now be reconciled to the bank’s records of the checking account. The accountant confirms that all transactions have been posted from the journal to the ledger. (This tells us that the Cash account balance reflects all transactions involving cash.) Comparing the bank statement to the Cash account in the general ledger reveals several items to be reconciled. Review each item below and determine which balance will need to be adjusted by the item and whether it is to be added or deducted from that balanceReconciling itemBalance to be adjustedEffect on balance1.A deposit in the amount of $1510.0 made on July 31 was not reported on the bank statement. _________________ _________________ 2.The accountant notices that a deposit made on July 6 has been reported on the bank statement as $230.0. The ledger account and the deposit receipt from the bank both show that the deposit was actually $500.0. _________________ _________________ 3.Check number 1281 was written on July 26 in the amount of $450.0 and is not listed on the bank statement. _________________ _________________ 4.Check number 1282 was written on July 28 in the amount of $680.0 and is not listed on the bank statement. _________________ _________________ 5.Check number 1286 was written on July 8 in the amount of $450.0 and is not listed on the bank statement. _________________ _________________ 6.Check number 1284 was written on July 31 in the amount of $1005.0 and is not listed on the bank statement. _________________ _________________ 7.One of Marden’s customers deposited $740.0 directly to Marden’s bank account for payment of its amount due. This appeared on the bank statement as a credit memo. _________________ _________________ 8.An additional credit memo in the amount of $45.0 reflected the amount of interest that the customer owed. _________________ _________________ 9.Marden Co. has its payment for phone service taken directly from its checking account. $250.0 appeared as a debit memo for July’s payment. _________________ _________________ 10.Marden Co. had received and deposited a check from one of its customers as payment on account. The check was returned for nonsufficient funds. The amount of the check was $515.0. _________________ _________________ 11.Check number 1282 was written for $680.0 to a supplier in payment on the amount due. The check cleared the bank for the written amount, $680.0. However, the check was recorded in the journal and posted to Marden Co.’s ledger in the amount of $655.0. (The journal entry was a debit to Accounts Payable and a credit to Cash for $655.0.) _________________ _________________ Based on the 11 items above, prepare the bank reconciliation. The beginning balance per the bank and general ledger cash account are provided. Enter all amounts as positive numbers.Marden Co.Bank ReconciliationFor Bank Statement Ended July 31Balance per bank statement, July, 31$5,000Adjusted balance$Balance per ledger, July, 31$4,200Adjusted balance$.homeworkmarket.com/sites/default/files/q5/29/11/CengageNOW%20_Ch%208_%20Assignment%20_%20Print_files/onepixel.gif” alt=””>APPLY THE CONCEPTS: Prepare the adjusting entries and determine their effectPrepare the journal entries required to update the accounting records after reconciling the checking account. The date that the entry is prepared is August 10, but, for your convenience, in this problem the date column has been replaced with the reconciling item number. (Hint: Click on each item number below for more information about the item.)If an amount box does not require an entry, leave it blank.GENERAL JOURNALITEMDESCRIPTIONDEBITCREDIT17 _________________ _________________ _________________ 12 _________________ _________________ _________________ 23348 _________________ _________________ _________________ 45 _________________ _________________ _________________ 56679 _________________ _________________ _________________ 78 _________________ _________________ _________________ 8991010 _________________ _________________ _________________ 1011 _________________ _________________ _________________ 1112121311 _________________ _________________ _________________ 1314 _________________ _________________ _________________ 14Click on each number below for information about the adjustments.ITEM+ 7+ 8+ 9+ 10+ 11Indicate the effect on the accounting equation of each transaction in the journal entries above.RowAssets=Liabilities+EquityAppears on:1 _________________ _________________ _________________ _________________ 2 _________________ _________________ _________________ _________________ 4 _________________ _________________ _________________ _________________ 5 _________________ _________________ _________________ _________________ 7 _________________ _________________ _________________ _________________ 8 _________________ _________________ _________________ _________________ 10 _________________ _________________ _________________ _________________ 11 _________________ _________________ _________________ _________________ 13 _________________ _________________ _________________ _________________ 14 _________________ _________________ _________________ _________________

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