Brett Knight Company operates four bowling alleys. The owner just received the O

Question

Brett Knight Company operates four bowling alleys. The owner just received the October 31 bank statement from City National Bank, and the statement shows an ending bank balance of $905. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $70 and a $30 charge for printing checks. In reviewing his cash records, Knight identified outstanding checks totaling $450 and a deposit in transit of $1775. During October, Knight recorded a $310 in the journal by debiting salaries expense and crediting cash for $31. His general ledger cash account shows on ending balance of $2209.

Prepare a bank reconciliation for Brett Knight Company as of October 31.

Explanation / Answer

Bank Reconciliation Statement for Brett Knight Company

Balance as per Bank Statement 905

Add:

EFT Rent 410

Service Charge 10

Deposit in transit 1775 2195

Less:

NSF Checks 70

Printing Checks 30

Out Standing Checks 450

Salaries 310

cash credited in journal entry 31 (891)     

Balance as per Cash Account 2209

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