Question

Thomas Consulting received the September 30th bank statement with the following monthly activity:

Balance at 8/31/2020	$68,922
Deposits	162,500
Checks paid	(187,412)
NSF checks	(800)
Auto withdrawal - loan payment automatically deducted from account (includes $225 in interest)	(5,125)
Bank service fees	(50)
Balance at 9/30/2020	$38,035

On 9/30/2020, the cash account ledger balance was $41,773.

Deposits in transit were as follows;

• 9/28 $3,200
• 9/29 $2,461
• 9/30 $2,757

All checks posted in the ledger cleared the bank except for those totaling $10,205. Also, a $500 deposit from a customer was mistakenly recorded as a $50 debit to cash and credit to accounts receivable.  

Required:

1. Using excel, prepare a Bank Reconciliation for Thomas Consulting as of 9/30/2020. You can use any format, just be sure your adjusted/corrected cash balance reconciles. Don't submit a Bank Reconciliation that doesn't reconcile. Please format your numbers with the thousands separator and no decimals.
2. In the same excel file, use a new sheet to record any necessary journal entries to adjust the cash account.  

Answer 1

Bank Reconciliation Statement
Balance as per Bank Statement	38,035
Add : Deposit in Transit	8,418
	46,453
Less : Outstnding Checks	10,205
Adjusted Balance as per Bank Statement	36,248
Balance as per Cash Account	41,773
Add : Check Error	450
	42,223
Less : Bank Charges	50
Less : NSF	800
Less : Loan Payment	4,900
Less : Interest on Loan	225
Adjusted Balance as per Cash Book	36,248

Entries

Date	Accounts and Explnation	Debit	Credit
30-Sep	Cash at Bank	450
	Accounts Receivable		450
30-Sep	Bank Charges	50
	Cash at Bank		50
30-Sep	Bank Charges - NSF	800
	Cash at Bank		800
30-Sep	Loan A/c	4900
	Interest on loan	225
	Cash at Bank		5125