Question

In: Accounting

Note the following information related to a company’s cash account : Cash Balance per Bank Cash...

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.

Solutions

Expert Solution

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)

ekkarill92 answered 2 years ago
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