ent Exercise 7-9 This information relates to the Cash account in the ledger of C
ID: 2552654 • Letter: E
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ent Exercise 7-9 This information relates to the Cash account in the ledger of Cullumber Company. Balance September 1-$17,090; Cash deposited-$64,000 Balance September 30-$18,290; Checks written-$62,800 The September bank statement shows a balance of $17,190 at September 30 and the following memoranda. Credits Debits $720 $1,990 50 NSF check: H. Kane Safety deposit box rent Collection of electronic funds transfer 65 Interest earned on checking account At September 30, deposits in transit were $4,903 and outstanding checks totaled $2,548. Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.,) CULLUMBER COMPANY Bank Reconciliation hnvacy.Policy I 2000-2018John Wileyasons, Inc. All Rights Reserved. A Division or_ohnwilee&Sons.; Inc.Explanation / Answer
Bank Reconciliation Statement for September 30 Particulars Amount Amount Balance as per Book (A) $18,290.00 Add: Outstanding Cheques $2,548.00 Collection of electronic fund Transfer $1,990.00 Interest Earned on Checking Account $50.00 Note with interest is collected directly by the bank Total of Addition (B) $4,588.00 Total (C = A + B) $22,878.00 Less: Deposit but recorded in bank $4,903.00 Cheque return due NSF $720.00 Bank charges not taken in the books $65.00 D = Total of Deuctible $5,688.00 Balance as per bank Statement (C+D) $17,190.00 Journal Entries Date Account Title and explanation Debit Credit Cash $ 1,990 Sept, 30 To Account Receivable $ 1,990 (To Record the electronic fund transfer) Sept, 30 Cash $ 50 To Interest Earned $ 50 (To Record the interest received ) Sept, 30 Account Receivable $ 720 To Cash $ 720 (To Record the NSF Check) Sept, 30 Bank Charges $ 65 To Cash $ 65 (To Record the Safety Deposite)
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