Alykhan Industries provided the following information for the month of February.
ID: 2493277 • Letter: A
Question
Alykhan Industries provided the following information for the month of February. 1.Balance per bank on February 28-$31,080 2.Balance per books on February 28-$32,210 3.Total outstanding checks at February 28-$2,100 4.Debit memoranda: a.NSF check from Sanderson, Inc.-$450 b.Printing company checks-$20 c.Electronic payment to bank for a loan-$2,220. Of this amount, $90 is interest. 5.Credit memorandum: EFT from customer for $1,450 6.A check written this month to City Utilities and cleared the bank at the correct amount of $1,790, but was recorded at $1,870. 7.The bank charged a $270 check of ABC Company against Alykhan Industries' account. 8.Deposit in transit on February 28-$1,800 Instructions A.Prepare a bank reconciliation in proper format. B.Record the necessary journal entries for the month of February for Alykhan Industries.Explanation / Answer
Balance as per bank
31,080
Less: Outstanding checks
-2,100
Add: Error 270
Deposit in transit 1,800
2,070
Adjusted balance
31,050
Balance as per books
32,210
Less: NSF 450
Printing charges 20
Loan paid 2,220
-2,690
Add: error 80
Cash from customer 1,450
1,530
Adjusted balance
31,050
Journal entries
Accounts
Debit
Credit
Account receivable
450
To cash
450
Miscellaneous expense
20
To Cash
20
Bank loan
2,200
Interest expense
20
To Cash
2,220
Cash
80
To Utilities expense
80
Cash
1,450
To account receivable
1,450
Balance as per bank
31,080
Less: Outstanding checks
-2,100
Add: Error 270
Deposit in transit 1,800
2,070
Adjusted balance
31,050
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