Question

This information relates to the Cash account in the ledger of Oriole Company.

          Balance September 1—$17,190; Cash deposited—$64,000
          Balance September 30—$18,390; Checks written—$62,800

The September bank statement shows a balance of $17,290 at September 30 and the following memoranda.

Credits				Debits
Collection of electronic funds transfer		$2,130		NSF check: H. Kane		$860
Interest earned on checking account		60		Safety deposit box rent		75

At September 30, deposits in transit were $5,053 and outstanding checks totaled $2,698.

Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.)

ORIOLE COMPANY Bank Reconciliation                                                                       September 30, 2017For the Year Ended September 30, 2017For the Month Ended September 30, 2017
NSF checkElectronic funds transfer receivedCash balance per bank statementSafety deposit box rentOutstanding checksInterest earnedDeposits in transitAdjusted cash balance per bank					$
LessAdd:	Interest earnedOutstanding checksDeposits in transitElectronic funds transfer receivedAdjusted cash balance per bankCash balance per bank statementNSF checkSafety deposit box rent
AddLess:	Electronic funds transfer receivedDeposits in transitOutstanding checksCash balance per bank statementAdjusted cash balance per bankNSF checkSafety deposit box rentInterest earned
Interest earnedOutstanding checksElectronic funds transfer receivedAdjusted cash balance per bankSafety deposit box rentCash balance per bank statementDeposits in transitNSF check					$
Electronic funds transfer receivedAdjusted cash balance per booksSafety deposit box rentOutstanding checksInterest earnedNSF checkDeposits in transitCash balance per books					$
LessAdd:
	Safety deposit box rentNSF checkOutstanding checksCash balance per booksElectronic funds transfer receivedDeposits in transitAdjusted cash balance per booksInterest earned		$
	Deposits in transitOutstanding checksCash balance per booksSafety deposit box rentElectronic funds transfer receivedAdjusted cash balance per booksNSF checkInterest earned
AddLess:
	Adjusted cash balance per booksDeposits in transitNSF checkElectronic funds transfer receivedSafety deposit box rentOutstanding checksInterest earnedCash balance per books
	Cash balance per booksOutstanding checksAdjusted cash balance per booksNSF checkInterest earnedDeposits in transitSafety deposit box rentElectronic funds transfer received
Safety deposit box rentElectronic funds transfer receivedOutstanding checksNSF checkCash balance per booksAdjusted cash balance per booksDeposits in transitInterest earned					$

eTextbook and Media

List of Accounts

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.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30
	(To record electronic funds transfer received by bank)
Sept. 30
	(To record Interest earned on checking account)
Sept. 30
	(To record NSF check)
Sept. 30
	(To record charges for safety deposit box rent)

Answer 1

Bank Reconciliation

Cash balance, as per bank statement, September 30		17,290
Add: Deposit in transit		5,053
		22,343
Less: Outstanding checks		- 2,698
Adjusted cash balance		$19,645
Balance as per Company's record, September 30		18,390
Add:
Electronic fund transfer	2,130
Interest earned	60	2,190
		20,580
Less:
NSF check	- 860
Safety deposit box rent	- 75	- 935
Adjusted cash balance		$19,645

Journal

Date	Account Titles and Explanation	Debit	Credit
Sept. 30	Cash	2,130
	Accounts receivable		2,130
	(To record electronic funds transfer received by bank)
Sept. 30	Cash	60
	Interest revenue		60
	(To record Interest earned on checking account)
Sept. 30	Accounts receivable - H. Kane	860
	Cash		860
	(To record NSF check)
Sept. 30	Safety deposit box rent	75
	Cash		75
	(To record charges for safety deposit box rent)