Question

In: Accounting

1. The bank statement for Green Iguana Co. indicates a balance of $8,000.00 on June 30,...

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.

Solutions

Expert Solution

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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Thanks

ekkarill92 answered 1 year ago
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