Question

Complete the Bank Reconciliation (15pts) Prepare a bank reconciliation as of December 31, 2017 using the following format. I am not going to be particular about how you show your numbers as long as you have them in the right spot and can get to the correct adjusted balances.

Bank Balance: Cash Balance:

Add: Add:

Deduct: Deduct:

Adjusted Balance: Adjusted Balance:

Journalize the necessary entries. After completing the bank reconciliation show any necessary journal entries. Pretend you have a general journal and make it very obvious which accounts are being debited and credited.

Example:

May 30 Cash 3,000

Sales 3,000

Information for the reconciliation:

The cash account for Jazzy J’s indicated a balance of $7,568. The December 31, 2017 bank statement indicated an ending balance of $5,738. Comparing the bank statement with the records revealed the following reconciliation items:

1) Check number 566 payable to Party Pete’s for $363 returned with the statement had been incorrectly recorded as $406.

2) An electronic funds transfer for $215 from Dancing Queen, a customer, was received by the bank on December 30.

3) A deposit in the amount of $2,450 was made too late to appear on the bank statement.

4) A check from Empty Purse for $80 was returned by the bank for insufficient funds.

5) Check numbers 756, 761, 762, 769 for the amounts of $320, $178, $56, $22 were written in December but have not been received by the bank.

6) An unrecorded ATM withdrawal for $120

7) Bank service charges for December amounted to $14.

Answer 1

	Bank Reconciliation
Bal per Bank		$    5,738
Add:
	Cheque Deposited but not credited	$    2,450	$    2,450
Less:	Cheque issued not presented-756	$        320
	Cheque issued not presented-761	$        178
	Cheque issued not presented-762	$          56
	Cheque issued not presented-769	$          22	$        576
Adjust Bal per Bank		$    7,612
Bal per Book		$    7,568
Add:
	Cheque Wrongly Entered in books	$          43
	Funds from Customer	$        215	$        258
Less:	ATM Withdrawal	$        120
	NSF RETURN	$          80
	Service Charges	$          14	$        214
Adjust Bal per Book		$    7,612
			$           -
Date	Journal Entry	Debit	Credit
	Bank	$        215
	Customer		$        215
	(Funds collected in bank)
	Bank	$          43
	Payable		$          43
	(Wrong Entry Rectified )
	Service Charges	$          14
	Bank		$          14
	(Service charges debited by bank)
	Cash	$        120
	Bank		$        120
	(ATM withdrawal)
	Accounts Receivable	$          80
	Bank		$          80
	(Cheque bounced)