Financial Accounting: E7-9 This information relates to the Cash account in the ledger of Hadaway

Financial Accounting
E7-9
This information relates to the Cash account in the ledger of Hadaway Company.
Balance September 1 - $16,400; Cash deposited - $64,000
Balance September 30 - $17,600; Checks written - $62,800
The September bank statement shows a balance of $16,422 at September 30 and the following memoranda.
Credits Debits
Collection of $1,800 note plus interest $30 1,830 NSF check: J. Hower 560
Interest earned on checking account 45 Safety deposit box rent 50
At September 30 Deposits in transit were $4,826 and outstanding checks totaled $2,383.

Instructions:
a. Complete the bank reconciliation at September 30, 2010 below. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1.)
b. Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Powered by