In: Accounting
Note the following information related to a company’s cash account :
Cash Balance per Bank
Cash balancer per bank, 12/31/19 |
9,610 |
Check #6832 cleared the bank for $240, but erroneously recorded by company for $268 |
|
Outstanding checks |
2,417 |
Deposit by ABC Inc erroneously recorded to the company by the bank |
486 |
NSF check returned by bank |
281 |
Cash balance per books, 12/31/19 |
7,430 |
December 2019 interest per bank |
30 |
Check mailed to bank for a deposit that had not reached the bank by 12/31/19 |
500 |
Prepare a bank reconciliation for the company for the month ended December 2019.
Prepare any journal entries that should be made based on the reconciliation prepared.
BRS for the month of December 2019 | |||
Cash balance as per Cash books | $ 7,430 | ||
Add. | Check #6832 cleared the bank for $240 but company recorded $268 | $ 28 | |
Add. | Outstanding Checks | $ 2,417 | |
Add. | Deposit By ABC recorded to the company by the bank | $ 486 | |
Less. | NFS check returned by bank | $ (281) | |
Add. | December Interest by bank | $ 30 | |
Less. | Check mailed to bank for deposit bt not reached to bank by 12/31/19 | $ (500) | |
Banalce as per Bank Statement | $ 9,610 | ||
Journal entries on the basis of reconciliation prepared | |||
Date | Accounts and titles | DR. | CR. |
31st DEC | Cash | $ 28 | |
Accounts payable | $ 28 | ||
(To correct check no. 6832 amount recorded) | |||
31st DEC | Accounts Receivable | $ 281 | |
Cash | $ 281 | ||
(Being NFS check returned by BanK) | |||
31st DEC | Cash | $ 30 | |
Interest | $ 30 | ||
(Interest recored) |