The following information pertains to Laguna corp. 1. Cash balance per bank, Oct

Question

The following information pertains to Laguna corp. 1. Cash balance per bank, October 31, $8, 205. 2. Cash balance per books, October 31 $8, 340. 3. October bank service charge not recorded by the depositor $15. 4. Deposits in transit, October 31, $6, 000. 5. Note for $5, 000 collected for Laguna in October by the bank, plus interest $125 less fee $20. The collection has not been recorded by Allied, and no interest has been accrued. 6. Outstanding checks, October 31, $850 7. NSF check: $325 from customer. 8. Deposit for $250 from customer was not recorded in the accounting records. Required: Prepare a bank reconciliation at October 31, 2007 and journal entries. Identify the items above that will require journal entries in the accounting records. Circle the corresponding number.

Explanation / Answer

(1) Bank reconciliation Statement

as on October 31, 2007

Debit Balance as Cash Book $8340

Less: Bank charges not recorded (15)

cheque in transit (not credited) (6000)

NSF check,recorded ($325)

Add: cheque issued but not presented for payment 850

Cheque deposited but not recorded in Books 250

Note direclty recieved by bank but not recoreded

[$5000 + $125 - $20] 5105   

   Credit balance as per Bank (pass Book) $8205

Journal entries:

3). Bank charges Dr.$15

   To Bank $15

7). Accounts receivable Dr.$325

   To Bank $325

  

8). Bank Dr. $250

To Accounts Receivable $250

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