Question

The September 30 bank statement for Bennett Company and the September ledger accounts for cash are summarized here: 

No outstanding checks and no deposits in transit were carried over from August; however, there are deposits in transit and checks outstanding at the end of September. 

Required:

 1. Reconcile the bank account. 

 2. Prepare the journal entries that should be made as the result of the bank reconciliation (If no entry is required for transaction/event, select "No journal entry required" in the first account field.) 

Answer 1

BENNETT COMPANY
Bank Reconciliation
Company Books		Amount	Bank Statement		Amount
Ending Balance as per cash Account 7500-1250(29850-28600)		$6,250	Ending Balance as Per Bank Statement		6899
Addition			Addition
			Deposit in transit 28600-26650		1950
					8849
Deduction			Deduction
Bank Services charge	51
NSF Check	100	151	Outstanding checks 27100-29850	2750	2750
Correct Cash Balance		$6,099	correct Cash balance		6099

Particular	Amount	Amount
Bank Services Charges	51
Cash (-A)		51
To record bank services charges deducted from the bank balance
Account Receivable	100
Cash -A		100
To record customer Check Returned Due to insufficient funds

Balance Sheet of Bennett Company
Current Assets
Cash		6099