Brett Knight Company operates four bowling alleys. The owner just received the O
ID: 2450983 • Letter: B
Question
Brett Knight Company operates four bowling alleys. The owner just received the October 31 bank statement from City National Bank, and the statement shows an ending bank balance of $905. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $70 and a $30 charge for printing checks. In reviewing his cash records, Knight identified outstanding checks totaling $450 and a deposit in transit of $1775. During October, Knight recorded a $310 in the journal by debiting salaries expense and crediting cash for $31. His general ledger cash account shows on ending balance of $2209.
Prepare a bank reconciliation for Brett Knight Company as of October 31.
Explanation / Answer
Bank Reconciliation Statement for Brett Knight Company
Balance as per Bank Statement 905
Add:
EFT Rent 410
Service Charge 10
Deposit in transit 1775 2195
Less:
NSF Checks 70
Printing Checks 30
Out Standing Checks 450
Salaries 310
cash credited in journal entry 31 (891)
Balance as per Cash Account 2209