Reference no: EM13488758

Question 1:

The following information is available for the Avisa Company for the month of November:

a. On November 30, after all transactions have been recorded, the balance in the company's Cash account has a balance of $27,202.

b. The company's bank statement shows a balance on November 30 of $29,279,

c. Outstanding checks at November 30 include check #3030 in the amount of $1,525 and check 43556 in the amount of $1,459.

d. A credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and credited the remainder of $770 to Avisa's account.

e. A debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.

f. A deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.

g. Examination of the checks on the bank statement with the entries in the accounting records reveals that check 43445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.

h. Included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.

Based on the above information, prepare the November Bank Reconciliation for the Avisa Company.

Question 2:

2. The following information is available to reconcile Quill Co. book balance of cash with its bank statement cash balance as of July 31, 2008:

a. After all posting is complete on July 31, the company's Cash account has a 11M640 debit balance, but its bank statement shows a $28,700 balance.

b. Checks outstanding total $8,360.

c. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. 2222 for July phone bill was correctly written and drawn for $720 but was erroneously entered in the accounting records as $270.

J. The bank charged Quill $40 for a safe-deposit box. Quill does not have a safe-deposit box.

e. A debit memorandum for $250 listi a $200 NSF check plus a $50 NSF charge. The check had been received from the Public Trust bank. Quill has not yet recorded this check as NSF.

f. Enclosed with the statement is a $40 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.

g. The July 31 daily cash receipts of $6,000 were placed in the bank's night depository on that date but do not appear on the July 31 bank statement.

Required

1. Prepare a bank reconciliation for this company as of July 31, 2008.

2. Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31, 2008.