oblem #3 Bank Reconciliation Below is the information pertaining to Johnny Apple

Question

oblem #3 Bank Reconciliation Below is the information pertaining to Johnny Apple Seed Company. Prepare a bank reconciliation and JEs on the homework sheet to turn-in. Cash balance per books was $10,457. Cash balance per bank statement $9,998. 1. 2. 3. 4. Deposits in transit total $1,233. Bank Service Charge for the month is $45. Bank collected $1,542 through Electronic Funds Transfer for Johnny Apple Seed Company Outstanding checks total $379 Company Check No. 231 was issued to John Doe and cleared the bank for $457 during the month. It was incorrectly recorded in the cash payments journal as $475. 6. The bank statement showed an NSF check of $432 7. Bank incorrectly deposited a check to Johnny Apple Seed Company's account for $230. The bank needs to correct this error.

Explanation / Answer

Bank reconciliation Bank balance 10457 Add Deposit in transit 1233 Less Outstanding checks 379 Incorrectly recorded by bank 230 609 Adjusted bank balance 11081 Cash balance 9998 Add Directly deposited in bank 1542 Incorrectly recorded (475-457) 18 1560 Less Service fees 45 NSF check 432 477 Adjusted cash balance 11081 Journal entries Service charges 45 NSF check 432               Cash 477 Cash 1560             Accounts payable 18              Accounts receivable 1542

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