The information below relates to the Cash account in the ledger of Robertson Com
ID: 2540481 • Letter: T
Question
The information below relates to the Cash account in the ledger of Robertson Company.
Balance September 1 -- $16,400; Cash deposited -- $64,000.
Balance September 30 -- $17,600; Checks written -- $62,800.
The September bank statement shows a balance of $16,422 on September 30 and the following memoranda.
Collection of $1,800 note plus interest $30 $1,830 NSF check: J. E. Hoover $360
Interest earned on checking account $45 Safety deposit box rent $50
At September 30, deposits in transit were $5,026, and outstanding checks totaled $2,383.
a)prepare the bank reconcilition at september 30,2018
b)prepare the adjusting entries at september 30 assuming (1) the NSF check was from a sustomer on account, an (2) no interest had been accrued on the note
Explanation / Answer
a) Bank Reconciliation Balance as per bank account 16,422 Add:Deposits in transit 5,026 21,448 less:Checks oustanding 2,383 Adjusted bank balance 19,065 Balance as per cash account 17,600 Add: note collection 1,830 interest earned 45 1875 19,475 less: NSF 360 Safety box rent 50 410 Adjusted cash balance 19,065 b) Adjusting entries Accounting titles & explanations Debit Credit Cash 1,830 Note receivable 1800 interest income 30 Cash 45 interest earned 45 Account receivable 360 cash 360 Miscellaneous expense 50 cash 50
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