Question

Introduction to Accounting

Problem #5- Bank Reconciliation

A) From the facts listed below, prepare a Bank Reconcilation for the Ryan Company at 11/30/18:

1) Balance per General Ledger Account- Cash $2,549.99

2) Balance per Citibank bank checking Account $3,359.78

3) Checks issued which did not clear the bank statement at 11/30/16 $1544.99

4) Deposits made which did not clear the bank account at 11/30/16 $816.20

5) CM on Citibank Statement for Note Receivable of $408.00: Note Receivable $400.00 + Interest of $8.00.

6) NSF Check Listed on Citibank Statement frim Joe Smith Co. $300.00

7) Bank Service Charge (SC) - $18.00

8) Check No. 879 for $732.26 to Taylor Co. on account, was incorrectly recorded in the CP Journal as $723.26

B) Record the neccessary Adjusting Entries to cash at 11/30/18, in a two column journal.

Answer 1

A) Bank Reconcilation statement as for the Ryan company at 11/30/16

   Particulars Amount($) Amount ($)

Balance per General Ledger Account- Cash 2549.99

Add : Checks issued which did not clear the bank statement 1544.99

CM on Citibank Statement for

-Note Receivable $400.00 400

-Interest of $8.00. 8

4502.98

Less: Deposits made which did not clear the bank account 816.20

   NSF Check Listed on Citibank Statement frim Joe Smith Co 300

Bank Service Charge (SC) 18

Check No 879 was recorded incorrectly in General ledger   09

as 723.26 instead of 732.26.So(732.26 - 723.26)

Balance per Citibank bank checking Account is 3359.78

B) Necessary Adjusting Entries are as follows

Particulars Debit Credit

1) Cash A/c 400

To Notes Recievable A/c 400

2) Cash A/c 08

To Interest On Notes Recievable A/c 08

3) Bank Service charges A/c 18

To Cash A/c 18

4) Taylor & co A/c 09

To Cash A/c 09

CASH BOOK
Particulars	Amount ($)	Particulars	Amount ($)
Balance b/f	2549.99	Checks issued but not cleared	816.2
Checks Issued but not cleared	1544.99	NSF check Listed	300
Notes Recievable	400	Bank service charge	18
Interest on Notes Recievable	8	Correction for check no 879	9
		Balance c/f	3359.78
	4502.98		4502.98