Question

10. Mooner Sooner has received their bank statement for the month ending April 30, 2020. The balance on the bank statement is $8,000. At the end of April, the balance per the books is $5,020. There are checks outstanding of $5,800 and a deposit in transit of $4,000. On the bank statement there is a EFT received of $1,500. There is an NSF check from Steve Mayberry for $300 and a bank service fee of $20. What is the reconciled bank balance of Mooner Sooner.

11. Make the journal entry to record the NSF check for Mooner Sooner in #10. Include the note.

Answer 1

Updates to bank statement		$
Ending balance as per bank statement		8000
Additions
Deposit in Transit		4000
Deductions:
Outstanding Checks		-5800
Uptodate ending  balance		6200

Updates to company’s books		$
Ending balance as per books		5020
Additions:
EFT Received Customer		1500
Deductions:
NSF Check		-300
Bank Charges		-20
Uptodate ending balance		6200

Combined reconciliation		$
Ending balance as per company’s books		5020
Additions
EFT Received Customer		1500
Outstanding Checks		5800
Deductions:
NSF Check		-300
Bank Charges		-20
Deposit in Transit		-4000
Outstanding Checks
Ending balance as per bank statement		8000

Journal entry for the NSF Check:

Date	Particulars	Debit	Credit
Apr 30, 20	Bank Dr	300
	Steve Mayberry		300
	(Being cheque dishonoured due to insufficient fund, the party re-recorded in the creditors with the same amount)