Accounting records show four checks issued that have not cleared the bank: #9762

Question

Accounting records show four checks issued that have not cleared the bank: #9762 $1,000 #9763 $500 #9770 $2,500 #9771 $200 Interest credited by the bank for the month of April 2012 is $t00. Bank charges for the month totaled $50. Credit card fees for the month were $?50. 1. Complete both the bank reconciliation and the journal entry, shown below, using the following information Balance per bank statement at 4/30/2012 is $22,000. Balance per accounting records at 4/30/2012 is $22,100. Accounting records show two deposits that are not on the bank statement: 4/29/2012 4/30/2012 .The bank returned one check for non-sufficient $1,500 $2.500 funds in the amount of $200. Bank Reconciliation DATE: Balance per Bank Statement ADD: Deposits in Transit LESS: Checks Outstanding AMOUNT Adjusted Bank Balance Cash Balance per Accounting Records ADD: Interest Received LESS: Bank Charges OURNAL ENTRY LESS. Credt Card FsJOURNAL ENTRY ? XuRNALENTRY LESS Non-sufficient Funds Checks Other Recondiling tems Adjusted Cash Balance (continued)

Explanation / Answer

Solution:

Bank Reconciliation Statement 4/30/2012 Balance as per Bank Statement $22,000.00 Add: Deposit in transit 4/29/2012 $1,500.00 4/30/2012 $2,500.00 Total additions $4,000.00 Less: Checks outstanding: Check 9762 $1,000.00 Check 9763 $500.00 Check 9770 $2,500.00 Check 9771 $200.00 Total Deductions $4,200.00 Adjusted Bank Balance $21,800.00 Cash Balance per accounting records $22,100.00 Add: Interest Received $100.00 Less: Bank Charges $50.00 Less: credit Card fees $150.00 Less: Not sufficient funds checks $200.00 Adjusted Book Balance $21,800.00

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