Cash balance per bank $8,200 Cash balance per books (general ledger) $6,500 Outs

Question

Cash balance per bank    $8,200
Cash balance per books (general ledger)    $6,500
Outstanding checks    $2,460
Check mailed to the bank for deposit had     
not reached the bank by the statement     
date.    $500
NSF check returned by the bank for      
accounts receivable    $100
July interest earned on the bank statement    $20
Check no. 700 for misc. expense cleared     
the bank for $200; erroneously recorded     
in our books for $20     
Prepare a bank reconciliation.     
      
Shown the accounting entries that must be made by
Matrix Inc. in journal entry and T-Account format.     

Explanation / Answer

Hi,

Please find the answer as followa:

Journal Entries:

NSF check returned by the bank for accounts receivable - $100

Accounts Recievable Dr 100

Bank Cr. 100

Check no. 700 for misc. expense cleared the bank for $200 erroneously recorded in our books for $20

Miscellaneous Expenses Dr. 180

Bank Cr. 180

July interest earned on the bank statement $20

           

Bank Dr    20

To Interest recieved Cr. 20

Part B - T Account Balance

Thanks.

Bank Account Particular Amount Particular Amount To Balance B/d 6500 By Accounts Recievable 100 To Interest Received 20 By Miscellaneous Expenses 180

By Balance C/d 6240
6520
6520

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