REQUIRED: PREPARE A BANK RECONCILIATION The ending cash balance per the books wa
ID: 2349206 • Letter: R
Question
REQUIRED: PREPARE A BANK RECONCILIATIONThe ending cash balance per the books was $16,673 on July 31, 2011. The only check outstanding from the prior month’s bank statement was check # 2874 for $1,210. During the month, the company records show that the following checks were written and deposits made:
---------Checks Written------- ---------Deposits Made---
date check # Description Amount date Amount
7/05 2905 Postage exp $ 270.00 7/07 $4,340
7/09 2906 Utilities exp 3,850.00 7/27 7,720
7/21 2907 supplies exp 460.00 7/31 2,090
7/23 2908 Salaries exp 1,530.00
7/24 2909 Travel exp 725.00
7/29 2910 paper exp 340.00
The bank statement dated July 31, 2011, gave the following information. Assume that all amounts on the bank statement are correct. Also assume that all sales are made on credit and that customer submit checks when paying off receivables.
Debits Credits
7/01 Beginning Balance $10,908
7/01 Interest earned 295
7/03 #2874 1210
7/07 Deposit 4,340
7/11 #2906 3,850
7/15 #2905 170
7/25 #2909 725
7/27 Deposit 7,270
7/29 #2908 1,350
7/30 NSF check #109 500
7/30/ Service Charge 12
7/31/ Ending Balance $14,996
A. Do the Bank Reconciliation
B. Do the journal entries necessary
Explanation / Answer
It balanced for me. Here's what I did. add beginning balance 10908 add interest 295 deduct outstanding check 2874 1210 corrected check 2905 170 check 2907 not cleared check 2908 transposed 1350 check 2910 not cleared correct deposit error 7270 add nsf check add service charge
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