An accountant for Harry Butterfield Apartments has the following data available to him. 

1.  The balance in the general ledger Cash account was $4,127.19 as of August 31.

2.  Total cash receipts for the month of September amounted to $22,401.03.           

3.  Cash disbursements for the month of September amounted to $21,071.13.         

4.  On September 30 the company had cash receipts of $750.20. This money was placed in the bank’s night deposit box that evening and wasn’t listed on the September bank statement.         

5.  The bank statement as of September 30 indicated a bank balance of $10,239.40.           

6.  A credit of $357.20 appearing on the bank statement represented a deposit made at the bank by Harry Batterfield and credited in error to Harry Butterfield.    

7.  The bank statement showed a deposit credit of $2,500 on September 27. This credit represented a loan from the bank which hadn’t been recorded on the company’s books as of September 30.     

8.  Included with the September bank statement was a debit memorandum from the bank for $14.30 representing service charges for September which hadn’t been recorded by the company.          

9.  Examination of the canceled checks included with the bank statement indicated that the following checks hadn’t as yet been paid by the bank. 

#2043  129

#2097  316

#3012  424

#3013  280

#3014  222

10.  A $200.00 check of Carl Elkins, a customer, was marked NSF and returned by the bank with the September bank statement. No entry has as yet been made in the company’s records to show the bank’s action on September 29, which was to charge the NSF check against Harry Butterfield’s account balance.  

11.  By comparing the canceled checks returned by the bank with the entries in the cash payments journal, it was discovered that check No. 2002 for $724.19, issued on September 9 in payment for office equipment, had been incorrectly entered in the cash payments journal as $742.19.

12.  On September 30 the bank collected a $1,500 noninterest-bearing note for Harry Butterfield Apartments. This transaction hadn’t as yet been recorded in the company’s books.    

REQUIRED:

Prepare a bank reconciliation as of September 30. Then complete questions 1 through 4 

1. The adjusted cash balance is          

A. $8,510.99.  C. $9,260.79.

B. $8,903.59.  D. $10,632.40.

2. Additions to the balance per books total   

A. $1,518.00.  C. $4,232.30.

B. $4,018.00.  D. $5,389.61.

3. The total deductions from the balance per bank statement are     

A. $357.20.      C. $1,371.61.

B. $1,107.40.  D. $1,728.81.

4. Based on the bank reconciliation, one of the adjusting entries needed as of September 30 is     

A. Accounts Receivable 200.00        

           Cash 200.00    

B. Cash 14.30

         Service Charges 14.30  

C. Cash 750.20          

          Accounts Receivable 750.20   

D. Accounts Payable 357.20 

          Cash 357.20