7 Not complete Points out of 1 ,00 P Flag question Bank Reconciliation The Chica

Question

7 Not complete Points out of 1 ,00 P Flag question Bank Reconciliation The Chicago Scooter Company's bank statement for the month of June ind icated a balance of S56000, company's cash account in the general ledger showed a balance of $46240 on june 30 Other relevant information indludes the following 1. Deposits in transit on june 30 total $41,600 2. The bank statement shows a debit memorandum for a check printing charge of $320. k number 160 payable to Simon Company was recorded in the accounting records for $1984 and cleared the bank for this same amount A review of the records indicated that the Simon account now has a $288 credit balance and the check to them should have been $2,272 4. Outstanding checks as of june 30 totaled $46,400. 176 was correctly written and paid by the bank for $3,248, The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $3,920 6. The bank returned a NSF check in the amount of $5.472 7. The bank included a credit memorandum for $10,080 representing a collection of a custo mer's note. The prinoiple portion was $9,600 and the interest portion was $480. The interest had not been acrued a. Prepare the june bank reconciliation for Chicago Scooter b. Prepare any necessary adjusting entries MICAGO SCOOTER COMPANY ry phpattempt 1748503 OF prt sc break 5 7 8 0

Explanation / Answer

BANK RECONCILIATION STATEMENT Balance as per bank Statement 56000 Add: Deposits in transit 41600 Less: Outstanding checks -46400 Adjusted balance as per Bank statement 51200 Balance as per Books 46240 Add: Error in Accounts payable check 672 Add: Collection of Note payable 10080 Less: Check book charges 320 Less: NSf check 5472 Adjusted balance in books 51200 Journal Entries: Accounts receivable Dr. 5472      Cash 5472 (for NSF check) bank service expense Dr. 320      Cash 320 (for check book charges) Cash Account dr. 672        Accounts payable 672 Cash Account Dr. 10080       Notes spayable 9600       Unearned interest 480

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