4) Rockaway Company received a bank statement for November, as follows: From: To

Question

4) Rockaway Company received a bank statement for November, as follows: From: To: Central Bank, Brooklyn, NY 11201 Rockaway Company, 1103 Rutland Road, Brooklyn, NY 11212 BALANCE $ 4,782.50 CHECKS DATE Nov 1 S 2,843.08 3,484.81 7,362.78 7.00 SC 17 20 26 30 346.10 5,288.90 680.00 CM 78.55 NSF 2,753.77 $ 3,530.61 sc service charge CM Credit Memo NSFCheck returned DM Debit Memo The receipt of $680 on November 17 was for a $665 note collected by the bank, plus $20 current interest, minus a $5 service charge. CASH DISBURSEMENTS CASH RECEIPTS Check No 6 $ 7,326.78 2,753.77 29 1,008.92 November 155 2,843.08 156 157 158 159 160 3,484.81 328.10 623.65 5,288.90 1,838.40 All receipts were verified twice and confirmed to be correct. The company noted that check # 157 was recorded correctly by the bank; the check was written in payment of an invoice from a supplier of office supplies. Cash balance on November 30 as per company books: Required: 1) Prepare the bank reconciliation on November 30, for the Rockaway Company. 2) Prepare the appropriate journal entries that Rockaway should record as a result of the reconciliation

Explanation / Answer

1. BRS:

2. Journal:

Bank account as per books Deduct Add item Checks Deposits Balance Closing balance 1,465.03 Interest on note        20.00 1,485.03 Note collected      665.00 2,150.03 Service charge on note           5.00 2,145.03 Service charge           7.00 2,138.03 Check correction 157        18.00 2,120.03 NSF        78.55 2,041.48 Adjusted balance 2,041.48 Bank balance as per statement 3,530.61 Reconciliation items: 3,530.61 Deposit in transit 1,008.92 4,539.53 Deposit correction on 6        36.00 4,503.53 Deposit in transit      623.65 3,879.88 Check in transit 1,838.40 2,041.48 Adjusted balance 2,041.48

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