Question

Prepare bank reconciliation and related entries. AP The bank portion of the bank reconciliation for Katsaris Company at August 31, 2017, was as follows:

KATSARIS COMPANYBank Reconciliation August 31, 2017 Cash balance per bank $13,229 Add: Deposits in transit 2,350 15,579 Less: Outstanding cheques #4451 $1,740 #4460 549 #4461 723 #4462 1,840 #4464 620 5,472 Adjusted cash balance per bank $10,107 The unadjusted cash balance per books on September 30, 2017, was $10,228. The September bank statement showed the following: KATSARIS COMPANY Bank Statement September 30, 2017 Cheques and Other Debits Date Number Amount Deposits Amount Aug. 31 $13,229 Sept. 1 4460 $ 549 $2,350 15,030 2 4461 723 14,307 5 4465 1,459 1,212 14,060 7 4462 1,840 12,220 8 4466 1,180 2,365 13,405 9 4467 2,268 11,137 15 4468 554 3,145 13,728 16 2,673 16,401 20 1,967 18,368 23 NSF 1,027 3,126 20,467 26 4470 3,040 17,427 27 4474 1,439 1,940 17,928 27 4472 488 1,070 18,510 30 4475 535 17,975 30 SC 45 17,930 Additional information: 1.The deposit of $3,145 on September 15 is an electronic transfer from a customer in payment of its account. The amount includes $65 of interest, which Katsaris Company had not previously accrued. 2.The NSF for $1,027 is for a $1,015 cheque from a customer, Hopper Holdings, in payment of its account, plus a $12 processing fee. 3.SC represents bank service charges for the month. The bank made one error: it recorded cheque #4475 incorrectly. Any other errors were made by Katsaris Company. The cash records per the company's books for September showed the following: Cash Payments Cash Receipts Date Number Amount Date Number Amount Date Amount Sept. 1 4465 $1,459 Sept. 23 4474 $ 1,439 Sept. 2 $ 1,212 2 4466 1,180 24 4475 553 7 2,365 2 4467 2,268 30 4476 1,280 15 2,763 5 4468 554 Total $15,076 20 1,967 8 4469 600 26 3,126 12 4470 3,400 28 1,940 17 4471 621 30 1,070 20 4472 488 30 754 22 4473 1,234 Total $15,197

Instructions (a) Prepare a bank reconciliation at September 30. (b) Prepare the necessary adjusting entries at September 30. (Note: The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.)

TAKING IT FURTHER The company will prepare entries to record items found in the above bank reconciliation (see part [b] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Katsaris Company's bank reconciliation.

Answer 1

Bank Reconciliation statement as on 30 Sept

Sr.no	Purticulers	Date	Cheque No	Amount
A	Balance as per our book as on 30 sep			$10107
B	Less:Debited in bank but not in our book
	Payment made but entry missing in our record	23 sep		1027
	Wrongly recorded as receipt in our book insted of payment	26 sep	4470	3040
	Wrongly recorded as receipt in our book insted of payment	27 sep	4472	488
	Cheque issued for $553 wrogly debited by bank $535	30 sep	4475	-18
	Bank charges to be record in our book	30 sep		45
	Total(B)			4582
C	Add:Credited by bank but not in our book
	Wrong recorded as Payment in our book instead of receipt	5 sep		1212
	Wrong recorded as Payment in our book instead of receipt	8 sep		2365
	Entry missing in our record	15 sep		3145
	Entry missing in our record	16 sep		2673
	Total(C)			9395
D	Less:Debited in our book but not in bank
	Cheque deposited but yet not cleared	8 sep	4469	600
	Wrong recorded into receipt side of our book,this is cheque issued for payment	12 sep	4470	3400
	Cheque deposited but yet not cleared	17 sep	4471	621
	Wrong recorded into receipt side of our book,this is cheque issued for payment	20 sep	4472	488
	Cheque deposited but yet not cleared	30 sep		754
	Cheque deposited but yet not cleared	22 sep	4473	1234
	Total(D)			7097
E	Add:Credited in our book but not in bank
	Cheque issued but not presented for payment		4451	1740
	Cheque issued but not presented for payment		4464	620
	Wrong recorded as Payment in our book			1212
	Wrong recorded as Payment in our book			2365
	Cheque issued but not presented for payment	30 sep	4476	1280
	Cheque issued but not presented for payment	15 sep		2763
	Total			9980
F	Balance as per bank book			17803
	Actual balance as per bank book			17930
	Differenace due to debit credit mis match in our book			-127