Question #1-Bank Reconciliation (2°marks) The following information is available

Question

Question #1-Bank Reconciliation (2°marks) The following information is available regarding Fahey Inc.'s chequing account: 1. 2. 3. The Balance on the September 30, 2017 Bank Statement was $2,316. The Company's cash account showed a balance of $2,800 on September 30. A comparison of the details between the September Bank statement and Fahey Inc.'s account revealed the following: a. Deposit in transit at the end of the month amounted to $400. b. Outstanding cheques at the end of the month amounted to $129. c. A cheque from a customer for $291 was entered by Summit's bookkeeper as S219. The bank entered the correct amount. A cheque for $265 from a customer as payment of its account was returned along with the September's bank statement as a NSF cheque. Bank service charges amounted to $20. d. e. Required: 1. Prepare the September 30, 2017 Bank Reconciliation for Fahey Inc. 2. Prepare necessary Adjusting Journal Entries that arise from the Bank Reconciliation for Fahe;y Inc

Explanation / Answer

1)

Bank Reconciliation Statement as on Sept 30

2)

Balance as per bank book $ 2,316 Balance as per cash book $ 2,800 Add: Add: Deposit in transit $     400 Cheque incorrect amount $        72 $ 2,716 $ 2,872 Less: Less: Cheque outstanding $     129 NSF cheque $ 265 Bank Service $    20 $     285 Adjusted Balance $ 2,587 Adjusted Balance $ 2,587

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