The August 31 bank statement of Watson Healthcare has just arrived from Union Ba

Question

The August 31 bank statement of Watson Healthcare has just arrived from Union Bank. To prepare the bank reconciliation you gather the following data:

Read the requirements.

1.) Prepare the bank reconciliation for Watson Healthcare at August 31, 2018.

2.) Journalize any required entries from the bank reconciliation. Include an explanation for each entry.

P7-34B (similar to) Question Helpi The August 31 bank statement of Watson Healthcare has just arrived from Union Bank. To prepare the bank reconciliation, you gather the following data: EEB (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare the bank reconciliation for Watson Healthcare at August 31, 2018. Watson Healthcare Bank Reconciliation August 31, 2018 Bank: ADD LESS Choose from any list or enter any number in the input fields and then click Check Answer parts remaining Clear All Check Answer

Explanation / Answer

1) Bank Reconciliation Statement

2)

a) Bank charges

Bank A/c

( Bank Charges were deducted from bank but not recorded in our books so to reconcile it we have to add it back to bank balance as per bank statement)

530

530

b) Accounts Payable

Bank account

( We have already issued checks and deducted from cash book but they are still pending hence we have to deduct it from bank balance)

1590

1590

c) Bank a/c

Accounts recievables

( Amount deposited into bank by customer but not recorded in our cash book , so we have to remove its effect from bank as well to reconcile it)

2200

2200

d) Bank a/c

Dividend a/c

Interest a/c

(Income recieved in bank but nit recorded in cash book so we have to remove its effect by subtracting from bank balance)

940

850

90

f) Bank charges

Bank a/c

(same explanation as point a)

100

100

g) Bank a/c

Watson treasure

( amount deposited in bank but not shown in bank statement so we have to add it to bank balance)

290

290

h) MSFC A/C

Bank a/c

(Amount wrongly deducted by bank should be added back)

600

600

Particulars Amount Bank opening Balance 6710 Add:- - charges for NSF (430+100) 530 - Bank service charged Not deducted in cash book 100 - Deposit not showing on bank statement 290 - Deduction of check drawn by MSFC 600 1520 Less:- - checks still outstanding (120+110+550+640+40+130) (1590) - Collection from customers through EFT (2200) - Interest revenue not recorded (90) - Dividend revenue recorded not recorded (850) (4730) Cash Balance 3500

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.