Question

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that Check No. 613 for $155 and Check No. 601 for $420 were both outstanding. Also, a $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected a $5,000 notes receivable on August 1 that was issued March 1. Accrued interest is $250. Northern Regional Bank charged a $35 fee for the collection service. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked “NSF.” The ending balance of the Roper cash account is $12,938. ?

Prepare a bank/account reconciliation and any necessary journal entries for the reconciliation.

Roper Electronics Bank Reconciliation August 30
Date General Journal Debit Credit

Answer 1

Solution:

Roper Electronics
Bank Reconciliation Statement
Aug-30
Balance as Per Bank Statement		$11,740
Add: Deposits in transit		$6,900
Less: Outstanding Checks (155+420)		$575
Adjusted Bank Balance		$18,065
Balance as per books		$12,938
Add:
Collection of Note and Interest ($5000+$250)	$5,250
		$5,250
Subtotal		$18,188
Less:
Collection charges	$35
Bank Service charges	$20
NSF Check	$68
		$123
Adjusted Balance per books		$18,065

Journal Entries
S. No.	Particulars	Debit	Credit
1	Cash Dr	$5,215
	Collection Fee Dr	$35
	To Note Receivable		$5,000
	To Interest revenue		$250
	(To record collection of Note and charges)
2	Miscellaneous expenses Dr	$20
	To Cash		$20
	(To record Bank service charges)
3	Accounts Receivable Dr	$68
	To Cash		$68
	(To record NSF Check)