My first Hard Question with 5 steps need Answers
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Q. (a) Bluegrass Tonight
is a nightclub
in Nashville.
The information necessary for preparing bank
reconciliation for the company at November 30 appears below:
1. As of November 30, cash per the
bank statement is $41,631 per the accounting records, $48,609.
2. Cash receipts
of $9,366 on November
30 were not deposited
until December 1.
3. Among the
paid checks returned
by the bank
was a stolen check for $1,512 paid in error after Bluegrass Tonight had officially notified
the bank not to make payment. Thus, payment of this check was
a bank error and should not have been charged
against Bluegrass Tonight’s bank account.
4. The following memoranda accompanied the bank statement:
a. A debit memo for service charges $21
b. A debit
memo attached to an $1,167 check
which Bluegrass had accepted from
a customer and deposited in its account,
but which the bank had returned with the marking “NSF”
c. A credit
memo for interest earned on
the account during November, $135.
5. The following checks had been issued
by the nightclub but had not
been paid by the bank as
of November 30: No.921 for $2,346; No. 924
for $1,446; and No. 925 for $1,161.
Instructions: Prepare the November 30 bank reconciliation. Pass necessary
journal entries
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