Instructions: Using the information below, complete the bank reconciliation for
ID: 2327976 • Letter: I
Question
Instructions: Using the information below, complete the bank reconciliation for both the "book" and the "bank" sides, and create all necessary adjusting journal entries.
Details:
- Cash balance per company's records as of July 31st, 2011 was $66,955
- Bank statement balance as of July 31st, 2011 was $15,875
- A deposit in the amount of $52,000 was deposited into the night depository of the bank on July 31st, but did not get recorded in the July 31st bank statement balance.
- Check #354 in the amount of $575 and check # 365 in the amount of $1,500 were outstanding as of this bank statement
- An NSF check in the amount of $500 (written by Jane Doe, a customer) was returned by the 'bank to the company in the July 31st bank statement
- A bank service charge in the amount of $50 was included in the July 31st bank statement
- Interest in the amount of $125 was deposited into our account by the bank.
- The bank collected $1,000 from a customer (H. Doe) on our behalf as part of the lockbox service 'that we established with the bank.
- The bank erroneously posted another company's check (i.e. withdrawal) in the amount of $5,000 to our account.
- The bank erroneously posted another company's deposit into our account in the amount of $3,000
- After reconciling the bank statement, we noticed that a check that was written to pay for the current month's utilities in the amount of $250 was improperly recorded in our own books as $520. (It was properly recorded in the bank statement as $250.)
Bank's Cash Balance Company's Book Balance Before Reconciliation Adjustment Description Adjustment Amount: Adjustment Description Adjustment Amount: After ReconciliationExplanation / Answer
Amount ($)
Bank's cash balance ($)
Before reconciliation
15,875.00
Adjustment description
Adjustment amount ($)
Deposit not recorded in the bank statement to be added
52,000.00
Check outstanding in the bank statement to be deducted
Check #354
(575.00)
Check #365
(1,500.00)
Check returned by the bank to be added
500.00
Bank service charge deducted in the bank statement but not recorded in company’s book
50.00
Interest deposited into the bank not recoded in cash book
(125.00)
Bank collected from customer directly not recorded company's book
(1,000.00)
Bank erroneously posted withdrawal
5,000.00
Bank erroneously posted deposit
(3,000.00)
Utilities check recorded wrongly (520-250)
(270.00)
51,080.00
Balance after reconciliation
66,955.00
Amount ($)
Company's book balance ($)
Before reconciliation
66,955.00
Adjustment description
Adjustment amount ($)
Deposit not recorded in the bank statement to be deducted
(52,000.00)
Check outstanding in the bank statement to be added
Check #354
575.00
Check #365
1,500.00
Check returned by the bank to be deducted
(500.00)
Bank service charge deducted in the bank statement but not recorded in company’s book
(50.00)
Interest deposited into the bank not recoded in cash book
125.00
Bank collected from customer directly not recorded company's book
1,000.00
Bank erroneously posted withdrawal
(5,000.00)
Bank erroneously posted deposit
3,000.00
Utilities check recorded wrongly (520-250)
270.00
(51,080.00)
Balance after reconciliation
15,875.00
Amount ($)
Bank's cash balance ($)
Before reconciliation
15,875.00
Adjustment description
Adjustment amount ($)
Deposit not recorded in the bank statement to be added
52,000.00
Check outstanding in the bank statement to be deducted
Check #354
(575.00)
Check #365
(1,500.00)
Check returned by the bank to be added
500.00
Bank service charge deducted in the bank statement but not recorded in company’s book
50.00
Interest deposited into the bank not recoded in cash book
(125.00)
Bank collected from customer directly not recorded company's book
(1,000.00)
Bank erroneously posted withdrawal
5,000.00
Bank erroneously posted deposit
(3,000.00)
Utilities check recorded wrongly (520-250)
(270.00)
51,080.00
Balance after reconciliation
66,955.00