AND STONES COMPANY\'S BANK STATEMENT FOR THE MONTH OF SEPTEMBER ED A BALANCE PER

Question

AND STONES COMPANY'S BANK STATEMENT FOR THE MONTH OF SEPTEMBER ED A BALANCE PER BANK OF 57,000. THE COMPANY'S CASH ACCOUNT IN THE GENERALL OTHER DAT 1) CASH RECEIPTS (DEPOSITS) FOR SEPTEMBER 30, RECORDED ON THE COMPANY's LEDGER HAS A BALANCE OF 54,459 AT SEPTEMBER 30 STOOK S WRES4.200 BUT THIS AMOUNT DOES NOT APPEAR ON TIHE BANK STATEMENT 2) THE BANK STATEMENT SHOwS A DEBIT MEMORANDUM FOR S50 FOR CHECK PRINTING, 3) THE TOTAL AMOUNT OF CHECKS STILL OUTSTANDING AT SEPTEMBER 30 AMOUNTED TO $6,000 4) CHECK NO. 138 WAS CORRECTLY WRITTEN AND PAID BY THE BANK FOR $409. THE CASH PAYMENT JOURNAL REFLECTS AN ENTRY FOR CHECK NO. 138 AS A DEBIT TO ACCOUNTS PAYABLE AND A CREDIT TO CASH IN BANK FOR $490.00 5) THE BANK RETURNED A NSF CHECK FROM A CUSTOMER FOR SS50 6) THE INCLUDED A CREDIT MEMORANDUM FOR $1,260 WHICH REPRESENTS COLLECTION OF A CUSTOMER'S NOTE BY TE BANKTHE PRINCIPAL AMOUNT OF THE NOTE WAS S1.200 AND THE INTEREST WAS $60. INSTRUCTIONS: a.) PREPARE A BANK RECONCILIATION FOR THE STICKS AND STONES COMPANY AT b.) PREPARE ANY ADJUSTING ENTRIES NECESSARY AS A RESULT OF THE BANK SEPTEMBER 30. RECONCILIATION 4700 409 64 530 200

Explanation / Answer

Bank Reconciliation Statement Balance as Per Bank Statement 7000 Balance as Per Cash Account 4459 Add Deposit in Transit 4200 Less Bank Charges -50 Less Check Outsatnding -6000 -1800 Add Error In recording (490-409) 81 Less NSF Check -550 AddNote receivable collected 1200 Add Interest on Note receivable 60 741 Adjusted Balance 5200 Adjusted Balance 5200 DR CR Bank Charges 50 Cash 50 Cash 81 Account Payable 81 Account Receivable 550 Cash 550 Cash 1200 Note Receivable 1200 Cash 60 Interest 60

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