Question

The following information is available regarding Western Regional Supply Company:

The company's December 2019 records showed the following:

Cash Receipts Journal				Cash Disbursements Journal
Date	$			Date	Cheque #	$
December 1                      9                    12                    21                    23                    30               TOTAL	5,000 8,300 7,200 10,900 2,700 3,200 $ 37,300			December 2                       6                     10                     15                     17                     23                     31	47 48 49 50 51 52 53 TOTAL	630 10,900 5,225      325      480      840      550 $18,950

GENERAL LEDGER
CASH
DATE	DESCRIPTION	PR	DR	CR	BALANCE
Nov.   30 Dec.       31             31	Bal. Forward	CR CD	37,300	18,950	$ 6,100    43,400 $ 24,450

The company's December 2019 bank statement showed the following:

                                                                              Canada East Bank

Bank Statement

For: Western Regional Supply Company           Month Ended: December 31, 2019

DATE                                         CHEQUES                                             DEPOSITS BALANCE

                                                                $                                                             #                                                                $                                                                            

Nov. 30                Balance Forward                                                                                                      $6,350.00

              3                                                                                                        5,000

              4                     #47                       630

              5

              9                                                                                                        8,300

              12                   #48                  10,900

              15                                                                                                      7,200

              16                   #50                       325

              20                   #51                       480

              21                                                                                                    10,900

              22                 #102                       275

              25                 NSF                       200                                                 2,700

              28                   #52                       840                                                          

              31                   S/C                       100                                              Int   50   $26,750.00

Legend: Int - Interest earned; S/C - service charges

Additional Information:

The bank incorrectly charged our account with the December 22 cheque #102. It was not a cheque Western Regional Supply had written.

The only reconciling item appearing on the Western Regional Supply Company’s bank reconciliation as at November 30, 2019 was an outstanding cheque #21 in the amount of $250.

The NSF cheque was regarding our customer, Mike Brown.

Answer 1

	Western Regional Supply Company
	Bank Reconciliation
	Dec-31
	Bank Statement Balance		26,750	Book Balance		24,450
	Add:			Add:
	Deposit in Transit	3,200
	Error by bank in check #102	275		Interest Received	50
	Deduct:			Deduct:
	Outstanding Checks(#21)	250
	Outstanding Checks(#49)	5,225		NSF Check	200
	Outstanding Checks(#52)	550		Bank Service Charge	100
	Adjusted Bank Balance		24,200	Adjusted Book Balance		24,200
	Journal Entries
	General Journal	Debit	Credit
1)	Cash	50
	Interest Revenue		50
	(To record interest revenue)
2)	Accounts Receivable	200
	Cash		200
	(To record NSF Check)
6)	Bank Service Charges	100
	Cash		100
	(To record bank charges)