The Following Information Is Available to Reconcile Dibble Co

question 152

Essay

The following information is available to reconcile Dibble Co.'s book balance of cash with its bank statement cash balance as of April 30.The April 30 cash balance according to the accounting records is $68,356,and the bank statement cash balance for that date is $73,525.
a.The bank erroneously cleared a $480 check against the account in April that was not issued by Dibble.The check documentation included with the bank statement indicates the check was actually issued by Flushing Co.
b.On April 30,the bank issued a credit memorandum for $53 interest earned on Dibble's account.
c.When the April checks are compared with entries in the accounting records,it is found that Check No.1828 had been correctly drawn for $1,530 to pay for advertising but was erroneously entered in the accounting records as $1,350.
d.A credit memorandum indicates that the bank collected $10,000 cash on a note receivable for Dibble,deducted a $30 collection fee,and credited the balance to the company's Cash account.Dibble did not record this transaction before receiving the statement.
e.A debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer.The bank assessed a $25 fee for processing it.
f.Dibble's April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date,but do not appear on the April 30 bank statement.
g.Dibble's April 30 cash disbursements journal indicates that Check No.1837 for $584 and Check No.1840 for $1,219 were both written and entered in the accounting records,but are not among the canceled checks.
1.Prepare the bank reconciliation for this company as of April 30.
2.Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of April 30.

---

Definitions:

Gestalt Psychologist

A psychologist who studies how people perceive and experience objects as whole patterns or configurations, emphasizing the context and the whole over individual components.

Figure; Ground

A principle in perception where the mind separates visual elements based on what is perceived as the central figure versus the background or context.

Stereoscopic Vision

The ability to perceive depth and three-dimensional structure from visual information in two dimensions by combining images from both eyes.

Binocular Inversion

A visual phenomenon where the perception of an object is flipped to appear upside down when viewed through binocular cues, highlighting the brain's role in interpreting sensory information.