Preparing a bank reconciliation statement and journalizing entries to adjust the
ID: 2442826 • Letter: P
Question
Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.On October 5, Sam Yao, Attorney at Law, received his September bank statement from First Security National Bank. Enclosed with the bank statement was a debit memorandum for $112 that covered an NSF check issued by Julia Anderson, a credit customer. The firm’s checkbook contained the following information about deposits made and checks issued during September. The balance of the Cash account and the checkbooks on September 30 was $16,622.
Date Transactions
Sept. 1 Balance $13,000
1 Check (124) 200
3 Check (125) 20
3 Deposit 1,000
6 Check (126) 450
10 Deposit 820
11 Check (127) 400
15 Check (128) 150
21 Check (129) 120
22 Deposit 1,460
25 Check (130) 8
25 Check (131) 40
27 Check (132) 70
28 Deposit 1,800
FIRST SECURITY NATIONAL BANK
Sam Yao, Attorney-at-Law
2222 Sam Houston Lane
Columbus, OH 44106
Account No. 11-4568.03
Period Ending Sept. 30
CHECKS DEPOSITS DATE BALANCE
Beginning Balance August 31 13,000.00
1,000.00+ September 3 14,000.00
200.00- September 6 13,800.00
400.00- 20.00- 820.00+ September 11 14,200.00
450.00- September 15 13,750.00
120.00- September 19 13,630.00
1,460.00+ September 23 15,090.00
40.00- 8.00- September 25 15,042.00
7.50- SC 112.00- DM September 28 14,922.50
Instructions:
(a) Prepare a bank reconciliation statement for the firm as of September 30.
(b) Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries October 5.
(c) Analyze: How many checks were paid (cleared the bank) according to the September 30 bank statement?
Explanation / Answer
Solution to this problem