Bank reconciliation and entries Miller Company is getting ready to prepare its b

Question

Bank reconciliation and entries Miller Company is getting ready to prepare its bank reconciliation for March. The February bank reconciliation showed outstanding checks #3239 for $419 and #3244 for $385 checks #3239 for $419 and #3244 for $385. The March 31 bank statement of Miller Company disclosed a balance of $8.201 and the Cash account in the general ledger indicated a balance of $3, 976. Miller's books showed the following information about checks written and deposits made The March 31 bank statement showed the following checks and deposits were processed by the bank in March: The following additional information was obtained from the bank statement: a customer's NSF check for $350 was returned with the bank statement.

Explanation / Answer

Miller Company   Bank reconciliation Statement March 31. Details Amt $ Balance as per Bank Statement                    8,201 Add Deposit in Transit                     904 Less   Outstanding Checks Chk 3244                   (385) Chk 3248               (1,015) Add   NSF Check not in Cash GL                     350 Less   Miller check 3246. wrong entry in cash book                   (900) Add Bank service charge not in Cash GL                        25 Less   Note with interest not in Cash GL               (3,004) Less   Wrong deposit to Miller by Bank                   (200) Balance as per Cash GL                  3,976 b Journal Entries Needed by Miller Account Title Dr $ Cr $ Accounts Receivable                     350 Cash                    350 (NSF check recording) Accounts Payable                    900 Cash                     900 ( wrong entry of check 3246 corrected) Bank Charges                        25 Cash                        25 Note Receivable                2,950 Interest Income                      54 Cash                  3,004 (Note & Interest receipt recorded) c T-Account Cash GL Details Amt $ Details Amt $ To unadjusted Balance Mar 31.                  3,976 By Accounts Receivable                   350 To Accounts Payable                     900 By Bank charges                        25 To Note receivable                  2,950 To Interest Income                        54 To Balance Mar 31.                  7,505 So Cash Balance to be reported on Mar 31=                  7,505

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