Question

VI BANK RECONCILIATION AS OF SEPTEMBER 20XX Checkbook Ralesce per Bank Checkbook Halance PART 3 BANK RECONCLATION STATEMENT OS Pela VI Ending Bask Statement Balance ADD Prepere a bank remi mmt and umal entries to at the ceh bine On September 30, 20xx.the belence in the checkhook of the Mtin Company wa S17,4 The bee thn on the hank tatement on the se wa$16,423 ADD 1. The fim's ds indicae thet $5450 de dd Sember 2 d wt rthe hk Matement 2. A svice charee of S6 and a db memoanden of $25 erering an NSF check have aot ye been entered in the fm's reoords DEDUCT DEDUCT 3 The checka lted below were ied hn heve nt t bem paid Iy the bark Check 864 for $3.38 A rdit memorndum hows th the hank has collocted a 52,500 note receivable and itrest of Kl0 r the fi These aount have not yt ben entered in the fim's recoeds Recosciled Balance Reconciled llalaace Instrections Prepare a bak concillion emon on he alachod fom as of September 30, 200x 2. Recond the gemeral joumal entries of anmy hems on the berk reconciliation statement thet met be journalined. Use the atached General Jounal. GENERAL JO0URNAL CREDIT DEBT DATE Adjusting Ennes

Answer 1

1) Bank Reconciliation Statement is shown as follows:- (Amounts in $)

Bank Reconciliation Statement As of September 20XX
Balance per bank		Checkbook
Ending Bank Statement Balance	16,422	Checkbook Balance	17,449
Add: Deposit on Sep 28	5,450	Add: Collection of Note	2,500
		Collection of Interest	30
	21,872		19,979
Deduct: Check No 864	2,383	Deduct: Service Charge	65
		NSF Check	425
Reconciled Balance	19,489	Reconciled Balance	19,489

Therefore the reconciled balance is $19,489.

Notes:-

a) The deposits and check not recorded in bank is credited to bank balance.

b) The service charge, NSF check not in firm's records and therefore deducted from checkbook balance. Similarly note and interest collected by bank added to checkbook balance.

2) The adjusting journal entries to adjust the cash balance is shown as follows:-

General Journal (Amounts in $)

Date	Account Titles and Explanations	Debit	Credit
Sep 30	Cash	2,530
	Notes Receivable		2,500
	Interest Income		30
	(To record the amount credited by bank)
Sep 30	Bank Service Charges	65
	Accounts Receivable	425
	Cash		490
	(To record the cash paid)