Practice Problem 1. The following information pertains to Laguna Corp.
1. Cash balance per bank, October 31, $8,205. 2. Cash balance per books, October 31 $8,340. 3. October bank service charge not recorded by the depositor $15. 4. Deposits in transit, October 31, $6,000. 5. Note for $5,000 collected for Laguna in October by the bank, plus interest $125 less fee $20. The collection has not been recorded by Allied, and no interest has been accrued. 6. Outstanding checks, October 31, $850 7. NSF check: $325 from customer. 8. Deposit for $250 from customer was not recorded in the accounting records. Required: Prepare a bank reconciliation at October 31, 2007 and journal entries. Identify the items above that will require journal entries in the accounting records. Circle the corresponding number.
Practice Problem 2 The following information pertains to Robo Corp.
1. Cash balance per bank, July 31, $8,500. 2. July bank service charge not recorded by the depositor $50. 3. NSF check: $600 from customer. 4. Deposits in transit, July 31, $2,300. 5. Note for $2,000 collected for Robo in July by the bank, plus interest $200 less fee $40. The collection has not been recorded by Allied, and no interest has been accrued. 6. Outstanding checks, July 31, $1,200 7. Cash balance per books, July 31 $8,090.
Required: Prepare a bank reconciliation at July 31, 2007 and journal entries. Identify the items above that will require journal entries in the accounting records. Circle the corresponding number.