Nicole has asked you to prepare a bank reconciliation for NGS. According to her

Question

Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS's cash

balance is $6,000 at December 31, but the bank reports a balance of $5,500.

a) The bank deducted $250 for an NSF check from a customer deposited on December 22.

b) NGS has written checks totaling $3,500 that have not yet cleared the bank.

c)The bank added $10 cash to the account for interest earned in December.

d) NGS made a $3,480 deposit on December 31, which will be recorded by the bank in January.

e) The bank deducted $10 for service charges.

f) NGS wrote a check to a supplier on account for $300 but mistakenly recorded it as $30.

Additionally, prepare journal entries for items (a)–(f) from the bank reconciliation, if applicable. If a

journal entry is not required for one or more of the reconciling items, indicate “no journal entry

required.”

Explanation / Answer

a Accounts Receivable 250          Cash 250 b No journal entry required c Cash 10         Interest revenue 10 d No journal entry required e Bank service charges/Miscellaneous expense 10          Cash 10 f Accounts Payable 270          Cash 270

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