E7-8 The following information is for Tindall Company in September: 1. Cash bala

Question

E7-8 The following information is for Tindall Company in September: 1. Cash balance per bank, September 30, $7,100. 2. Cash balance per books, September 30, $5,470. 3. Outstanding cheques, $3,120 4. Bank service charge, $22. 5. NSF cheque from customer, $220. 6. Deposits in transit, $1,380. 7. EFT receipts from customers in payment of their accounts, $78. 8. Cheque #212 was correctly written and posted by the bank as $428. Tindall Company had recorded the cheque as $482 in error. The cheque was written for the purchase of supplies. Instructions (a) Prepare a bank reconciliation at September 30, 2017. (b) Journalize the adjusting entries at September 30, 2017, on Tindall Company's books. E7-9 Don Wyatt s unable to reconcle the bank balance at January 31. Dons reconciliation is as follows. Cash balance per bank Add: NSF cheque Less: Bank service charge Adjusted balance per bank Cash Less: Deposits in transit Add: Outstanding cheques Adjusted balance per books $3,560.20 490.00 25.00 $4,025.20 $3,875.20 530.00 730.00 $4,075.20 Instructions (a) Prepare a correct bank reconciliation. (b) Journalize the entries required by the reconciliation.

Explanation / Answer

Req a:' BANK RECONCILIATION STATEMENT; Balance as per bank statemeent: 7,100 Add: Deposits in transit 1380 Sub totals 8480 Less: Outstanding checks 3120 Adjusted balance as per bank statement 5360 Balance as per books 5470 Add: EFT received 78 Add: Error in recording supplier check 54 132 Sub totals 5602 Less: Bank service charges 22 Less: NSF check 220 242 Adjusted balance as per Books 5,360 Journal entries: Accounts and explanation Debit $ Credit $ Cash Account Dr. 78      Accounts receivable 78 Cash Account Dr. 54       Accounts payable 54 Accounts r eceivable Dr. 220      Ccash Account 220 Service charges expense Dr. 22        Cash Account 22

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