Question

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,390 and #5893 for $1,528.00. The following information was available for the September 30, 2020, reconciliation:

From the September 30, 2020, bank statement:

Balance of previous statement on Aug. 31/20	10,979.00
6 deposits and other credits totalling	23,509.00
9 cheques and other debits totalling	27,498.00
Current balance as of Sept. 30/20	6,990.00

Chequing Account Transactions
Date			Amount			Transaction Description	Date	Amount			Transaction Description
Sept.	05		5,804.00			+ Deposit	Sept. 25	4,348.00			+ Deposit
	12		2,637.00			+ Deposit	30	54.00			+ Interest
	17		495.45			− NSF cheque	30	3,518.00			+ Credit memo
	21		6,621.00			+ Deposit

Date			Cheque No.	Amount		Date		Cheque No.	Amount
Sept.	03		5904	9,340.55		Sept. 22		5888	6,390.00
	07		5901	1,459.00		24		5909	2,589.00
	08		5905	410.00		28		5907	4,024.00
	10		5903	1,598.00		29		5902	1,192.00

From Pelzer Company’s accounting records:

Cash								Acct. No. 101
Date			Explanation	PR	Debit		Credit	Balance
2020
Aug.	31		Balance					3,588.00
Sept.	30			CR12	24,178.00			27,766.00
	30			CD23			17,116.55	10,649.45

Deposits Made
Sept.	5		$	5,804.00
	12			2,637.00
	21			6,621.00
	25			4,348.00
	30			4,768.00
Total Sept. Cash Receipts			$	24,178.00

Cheques Written
No.	5901		$	1,459.00
	5902			1,192.00
	5903			1,598.00
	5904			3,940.55
	5905			410.00
	5906			868.00
	5907			4,024.00
	5908			1,036.00
	5909			2,589.00
Total Sept. Cash Disbursements			$	17,116.55

• Cheque #5904 was correctly written for $9,340.55 to pay for computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $3,940.55. The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company.
• The credit memo resulted from an electronic fund transfer of $3,568 for a customer payment. The bank had deducted a $50.00 bank service charge. The collection has not been recorded.

Required:
1. Prepare a September 30 bank reconciliation for the company. (Round your answers to 2 decimal places.)

2. Prepare the General Journal entries needed to adjust the book balance of cash to the reconciled balance. (Round your answers to 2 decimal places.)

Answer 1