Problem 6-19B Missing Information in a Bank Reconciliation

Internal Control and Accounting for Cash

Problem 6-19B Missing Information in a Bank Reconciliation

The following data apply to Woods Sports Inc. for April Year 1:

1. Balance per the bank on April 30: $13,750.
2. Deposits in transit not recorded by the bank: $3,600.
3. Bank error; check written by Glen Woods on his personal checking account was drawn on Woods Sports Inc.’s account: $800.
4. The following checks written and recorded by Woods Sports Inc. were not included in the bank statement:
   1901 $ 265
   1920 650
   1921 1,200
5. Credit memo for note collected by the bank: $1,100.
6. Service charge for collection of note: $50.
7. The bookkeeper recorded a check written for $760 to pay for April’s office supplies as $670 in the cash disbursements journal.
8. Bank service charge in addition to the note collection fee: $45.
9. NSF checks returned by the bank: $175.

Required:
Determine the amount of the unadjusted cash balance per Woods Sports Inc.’s books.

Problem 6-20B Adjustments to the Cash Account Based on the Bank Reconciliation

Determine whether the following items in China Imports’ bank reconciliation require adjusting or correcting entries on China Imports’ books. When an entry is required, record it in general journal format.
a. The bank statement indicated that China Imports earned $60 of interest revenue.
b. China Imports’ accountant mistakenly recorded a $430 check that was written to purchase supplies as $350.
c. Bank service charges for the month were $45.
d. The bank reconciliation disclosed that $800 had been stolen from China Imports’ business.
e. Outstanding checks amounted to $2,600.
f. The bank collected $4,000 of China Imports’ accounts receivable. China Imports had instructed its customers to send their payments directly to the bank.
g. The bank mistakenly gave Imports Inc. credit for a $800 deposit made by China Imports.
h. Deposits in transit were $6,200.
i. China Imports’ bank statement contained a $525 NSF check. China Imports had received the check from a customer and had included it in one of its bank deposits.