In: Accounting
The cash account of the Malpractice Medical Company at May 31, 2019 is $35,670. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the cancelled checks and the accompanying memos with the records revealed the following reconciling items:
Required:
Prepare a bank reconciliation as of May 31, 2019
Journalize the necessary adjusting entries
Requirement 1 |
|
$ |
|
Bank Balance To Corrected Balance |
|
Balance As Per Bank Statement |
$43,525 |
Less: Checks Outstanding |
-$6,440 |
Add: Deposits Outstanding |
$1,850 |
Add: Bank Error In Recording Check |
$540 |
Corrected Cash Balance |
$39,475 |
Corrected Cash Balance |
|
Book Balance To Corrected Balance |
|
Balance As Per Books |
$35,670 |
Add: Note & interest collected by bank |
$5,250 |
Less: Error In Recording Check |
-$90 |
Less: Service Charge |
-$30 |
Less: Check returned by bank |
-$1,325 |
Corrected Cash Balance |
$39,475 |
Requirement 2 |
|||
General Journal |
Debit |
Credit |
|
1 |
Cash Account |
$5,250 |
|
Note Receivable |
$5,000 |
||
Interest Revenue |
$250 |
||
2 |
Accounts Payables |
$90 |
|
Accounts Payables |
$1,325 |
||
Miscellaneous Expense - Bank Service Charge |
$30 |
||
Cash |
$1,445 |
||