t in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following: Deposits in transit on September 30 total $9,850. The bank statement shows a debit memorandum for a check printing charge of $95. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568. Outstanding checks as of September 30 totaled $11,600. Check No. 276 was correctly written and paid
t in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following: Deposits in transit on September 30 total $9,850. The bank statement shows a debit memorandum for a check printing charge of $95. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568. Outstanding checks as of September 30 totaled $11,600. Check No. 276 was correctly written and paid
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section5.2: Bank Reconciliation
Problem 1OYO
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Question
Bank Reconciliation
The Seattle First Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following:
- Deposits in transit on September 30 total $9,850.
- The bank statement shows a debit memorandum for a check printing charge of $95.
- Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568.
- Outstanding checks as of September 30 totaled $11,600.
- Check No. 276 was correctly written and paid by the bank for $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754.
- The bank returned a NSF check in the amount of $1,110.
- The bank included a credit memorandum for $2,620 representing a collection of a customer’s note. The principle portion was $2,400 and the interest portion was $220. The interest had not been accrued.
Required
a. Prepare the September bank reconciliation for Seattle First Company.
b. Prepare any necessary
- Bank reconciliation
Journal entries
Note: Do not use negative signs with any of your answers.
SEATTLE FIRST COMPANY Bank Reconciliation September 30 |
||
---|---|---|
Cash Balance per Bank | Answer | |
Answer | Answer | |
Answer | Answer | |
Answer | Answer | |
Cash Balance per Books | Answer | |
Add: Accounts Payable Error | Answer | |
Answer | Answer | Answer |
Less: Check Printing Charge | Answer | |
Answer | Answer | Answer |
Answer | Answer |
GENERAL JOURNAL | ||||
---|---|---|---|---|
Date | Description | Debit | Credit | |
Sept | 30 | Answer | Answer | Answer |
Answer | Answer | Answer | ||
To correct check error in recording check No. 276. | ||||
30 | Answer | Answer | Answer | |
Notes Receivable | Answer | Answer | ||
Answer | Answer | Answer | ||
To record note collection by bank. | ||||
30 | Answer | Answer | Answer | |
Answer | Answer | Answer | ||
To record check printing charge. | ||||
30 | Answer | Answer | Answer | |
Answer | Answer | Answer | ||
To record NSF check. |
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