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Vedmedyk [2.9K]
3 years ago
14

Sullivan Company has a Cash account balance of $8,112.62, and on September 30, the bank statement indicated a balance of $9,098.

55. Using the following data, prepare a bank reconciliation and any necessary journal entries for Sullivan Company on September 30.
a. Deposits in transit amounted to $3,358.19.
b. Outstanding checks totaled $1,251.12.
c. The bank erroneously charged a $215 check of Solomon Company against the Sullivan bank account.
d. A $15 bank service charge has not yet been recorded by Sullivan Company.
e. Sullivan Company neglected to record $3,000 borrowed from the bank on a 10%, 6-month note. The bank statement shows the $3,000 deposit.
f. An NSF check in the amount of $640 from J. Martin in payment on account has been returned.
g. Sullivan Company recorded a $107 payment for repairs as $1,070.
Business
1 answer:
slega [8]3 years ago
5 0

Answer and Explanation:

The preparation of the bank reconcilliation statement is presented below:

<u>Bank                                                                                     Books</u>

Balance      $9,089.55                           $8,112.62

Add: deposit in transit $3,358.19   Add: note payable borrowed $3,000

Less: outstanding checks $1,251.12 Add: error in recording $963

Add: error by bank $215                    ($1,070 - $107)

                                                           Less: bank charges $15

                                                            Less: NSF check $640

Updated balance $ 11,420.62           Updated balance $ 11,420.62          

The journal entries are shown below:

On July 31

Cash  $3,000

         To Notes payable  $3,000

(Being note payable is recorded)

Cash $963

         To Repair expenses  $963

(being error is recorded)

 Bank charges  $15

      To Cash  $15

(Being cash paid is recorded)

Account receivables  $640

          To Cash  $640

(Being cash paid is recorded)

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The correct answer to this open question is the following.

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In the workplace, everything is based on the smart and efficient use of time. No time must be wasted in the workplace.

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The management of time is very different in Latin American countries. It is not as important as the US. People in Latin America approach the concept of time in a more relaxed way. In Latin America, there is a more relaxed approach to time. Nothing is urgent, Things take time. Things are made at a different pace compared to the US.

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