Question

1. The bank statement for Green Iguana Co. indicates a balance of $8,000.00 on June 30, 2019. After the journals for June had been posted, the cash account for the Green Iguana had a balance of $3,675.00.

2. The following reconciling items:

(a) Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.

(b) Deposits in transit not recorded by bank, $500.00.

(c) Bank service charges for $25.00.

(d) A note collected by bank, $2,850, including $50 interest.

(e) $218.00 NSF (not sufficient funds) check from Alice Bell, a customer.

(f) Checks outstanding totalized $2,200.00.

Instructions: Prepare a bank reconciliation and post any entries as per bank reconciliation.

Answer 1

Green Iguana Co.
Bank Reconciliation
Jun-30
Bank statement balance	8,000	Book balance	3,675
Add:		Add:
Deposit in transit	500	Note collected by bank	2800
		Interest earned	50
		Correct of book error	18
	8,500		6,543
Less:		Less:
Outstanding check	-2,200	Bank service charges	-25
		NSF Check	-218
Adjusted bank balance	$6,300	Adjusted book balance	$6,300

Date	General Journal	Debit	Credit
June 30	Cash	$2,850
	Note receivable		$2,800
	Interest revenue		$50
	( To record note receivable and interest)
June 30	Cash	$18
	Sales		$18
	( To record correction of book error)
June 30	Accounts receivable - Alice bell	$218
	Cash		$218
	( To record NSF check)
June 30	Bank service charges	$25
	Cash		$25
	( To record bank service charges)

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