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

1]	BANK RECONCILIATION STATEMENT
	Balance per ledger		$            41,773	Balance per bank statement		$        38,035
	Additions:			Additions:
	Accounts receivable [short credit taken]		$ 450	Deposit in transit [3200+2461+2757]	$           8,418	$          8,418
			$            42,223			$        46,453
	Deductions:			Deductions:
	Service charges	$ 50
	Loan repaid	$                4,900
	Interest on loan	$                   225
	NSF checks	$                   800	$              5,975	Checks outstanding	$         10,205	$        10,205
	Ending correct cash balance		$            36,248	Ending correct cash balance		$        36,248
2]
Date	Account Titles and Explanations	Debit	Credit
9/30/2020	Cash	$                   450
	Accounts receivable		$                  450
	[To correct short credit taken]
9/30/2020	Service charges	$                      50
	Cash		$                    50
	[To record charges debited by bank]
	Accounts receivble	$                   800
	Cash		$                  800
	[To record NSF check]
	Loan	$                4,900
	Interest expense	$                   225
	Cash		$              5,125
	[To record payment against loan]