Question

Problem 4-61A Bank Reconciliation Romain Corporation received the following bank statement for the month of October: OBJECTIVE 3 (Continued)

Answer 1

Amount Bank side $7,912.26 Cash balance from bank statement Amount $ 5,311.70 $ 3,408.20 1 Bank reconcillation Book sde Cash balance from company records Add: Error in recording check 1922 (recorded as 1803.77 instead of 1308.770) Less: NSF check Debit memo (rent expense) service charge Adjusted cash balance $495.00 Add: Deposit in transit Less: Outstanding checks $ -290.45 Check 1923 $ -290.00 Check 1924 $ -20.00 $ 7,806.81 Adjusted cash balance $ $ 284.77 628.32 $ 7,806.81 2 Journal entries Partculars |DR CR Bank expense $ 20.00 Cash To record service charges deducted by the bank, as an expense 20.00 $ 290.00 Rent expense (debit memo) Cash To record payment of rent by bank 290.00 Accounts receivables $ 290.45 Cash 290.45 To record NSF check returned by the bank. It increases the accounts receivable. Hence debit it 3 The amount to be reported for cash in bank in the balance sheet at october 31 is 7806.81.