In: Accounting
This information relates to the Cash account in the ledger of
Cullumber Company.
Balance
September 1—$20,340; Cash deposited—$64,000
Balance
September 30—$21,540; Checks written—$62,800
The September bank statement shows a balance of $20,440 at
September 30 and the following memoranda.
Credits |
Debits |
|||||
---|---|---|---|---|---|---|
Collection from customer of electronic funds transfer |
$2,460 |
NSF check: H. Kane |
$1,190 | |||
Interest earned on checking account |
65 |
Safety deposit box rent |
80 |
At September 30, deposits in transit were $5,388 and outstanding
checks totaled $3,033.
1. Prepare the bank reconciliation at September 30, 2022. (List items that increase balance as per bank & books first.)
2. Prepare the adjusting entries at September 30, assuming the NSF check was from a customer on account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Cullumber Company | ||||||
Bank Reconciliation | ||||||
Sep. 30 | ||||||
Bank Statement Balance | 20,440 | Book Balance | 21,540 | |||
Add: | Add: | |||||
Deposit in Transit | 5,388 | EFT Collected | 2,460 | |||
Interest Revenue | 65 | |||||
Deduct: | Deduct: | |||||
SERVICE CHARGE | 80 | |||||
Outstanding Checks | 3,033 | |||||
NSF Check | 1,190 | |||||
Adjusted Bank Balance | 22,795 | Adjusted Book Balance | 22,795 | |||
Journal Entries | ||||||
General Journal | Debit | Credit | ||||
Sep. 30 | CASH | 2,460 | ||||
Note Receivable | 2,460 | |||||
(To record note receivable) | ||||||
Sep. 30 | CASH | 65 | ||||
Interest Revenue | 65 | |||||
(To record interest revenue) | ||||||
Sep. 30 | Accounts Receivable | 1,190 | ||||
Cash | 1,190 | |||||
(To record NSF Check) | ||||||
Sep. 30 | Bank Charges | 80 | ||||
Cash | 80 | |||||
(To record bank charges) | ||||||