Question

Bank Reconciliation The Seattle Boat Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $9,778 on September 30. Other relevant information includes the following:

1. Deposits in transit on September 30 total $9,700.
2. The bank statement shows a debit memorandum for a check printing charge of $95.
3. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568.
4. Outstanding checks as of September 30 totaled $11,600.
5. Check No. 276 was correctly written and paid by the bank for $818. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $980.
6. The bank returned a NSF check in the amount of $990.
7. The bank included a credit memorandum for $2,620 representing a collection of a customer’s note. The principle portion was $2,400 and the interest portion was $220. The interest had not been accrued.
   

Required
a. Prepare the September bank reconciliation for Seattle Boat Company.
b. Prepare any necessary adjusting entries.

Note: Do not use negative signs with any of your answers.

SEATTLE BOAT COMPANY Bank Reconciliation September 30
Cash Balance per Bank		Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks		Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks		Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks		Answer
Cash Balance per Books		Answer
Add: Accounts Payable Error	Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks	Answer	Answer
Less: Check Printing Charge	Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks	Answer	Answer
AnswerReconciled Cash Balance per BankReconciled Cash Balance per BooksCollection of NoteDeposit in TransitNSF CheckOutstanding Checks		Answer

GENERAL JOURNAL
Date		Description	Debit	Credit
Sept	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To correct check error in recording check No. 276.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		Notes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To record note collection by bank.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To record check printing charge.
	30	AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		AnswerAccounts PayableAccounts ReceivableCashInterest EarnedMiscellaneous ExpenseNotes Receivable	Answer	Answer
		To record NSF check.

Please answer all parts of the question.

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Answer 1

Answer to Requirement A:

SEATTLE BOAT COMPANY Bank Reconciliation September 30 Cash balance per bank Add: Deposit in transit Less: Outstanding checks Adjusted cash balance per book 13,375 $ $ 9,700 11,600 11,475 Cash balance per books Add: Accounts payable error Add: Collection of note Less: Check printing charge Less: NSF check Adjusted cash balance per book $ 9,778 162 2,620 $ 2,782 95 990 $ 1,085 $ 11,475

Answer to Requirement B:

General Journal Debit Credit Date Cash $ Sept. 30 162 Accounts Payable 162 (To correct error in recording Check No. 138) Cash 2,620 Sept. 30 $ Notes Receivable 2,400 Interest Revenue 220 (To record collection of note receivable and interest by the bank) Miscellaneous Expense $ Sept. 30 95 $ Cash 95 (To record check printing charges) Accounts Receivable $ Sept. 30 990 Cash 990 (To record NSF check)