The information below relates to the Cash account in the ledger of Brett Company
ID: 2548521 • Letter: T
Question
The information below relates to the Cash account in the ledger of Brett Company. Balance September 1-$9,947; Cash deposited-$37,120. Balance September 30-$10,094; Checks written-$36,973. The September bank statement shows a balance of $9,525 on September 30 and the following memoranda. Credits Debits Collection of $850 note plus interest $34 $884 Interest earned on checking account $26 NSF check: J. Jackson $245 Safety deposit box rent $35 At September 30, deposits in transit were $2,581, and outstanding checks totaled $1,382 Instructions (a) Prepare the bank reconciliation at September 30. (b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.Explanation / Answer
Bank Reconciliation September 30 Cash balance per bank statement 9525 Add: Deposits in transit 2581 12106 Less: Outstanding checks 1382 Adjusted cash balance per bank 10724 Cash balance per books 10094 Add:Notes Collected 884 interest Earned 26 910 11004 Less: NSF Check 245 Safety Deposit Box Rental 35 280 Adjusted cash balance per books 10724 b Cash 884 Notes Receivable 850 Interest Revenue 34 Cash 26 Interest Revenue 26 Accounts Receivable 245 Cash 245 Miscellaneous expense 35 Cash 35
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