Question

E FIRST NATIONAL BANK 136 South Po Po Pwy PO BOX 220 mon, CO 80110 Green Valley Coffee Company CHECKING ACCOUNT 136-213733 3814 Glenwood Parkway Littleton, CO 80110 December 31, 2018 BEGINNING BALANCE TOTAL DEPOSITS TOTAL WITHDRAWALS SERVICE CHARGES ENDING BALANCE 6,550 4,370 5,000 - TRANSACTIONS DATE AMOUNT DEPOSITS 1204 Deposit EFT-Receipt of cash dividend Depo AMOUNT CHARGES Service Charge DATE 1201 Number CHECKS Number Amount DATE OTHER DEDUCTIONS EFT-insurance General Ledger: ACCOUNT Cash: Checking Account First National Bank Date l em Debit Credit Balance 6.550 1.150 Dec1 2 7 31 Balance Cash receipt Cash receipt Cash payme 7,890 1.740 6150 1,600 340 Cash Payments Correct amount of check 335 is $150.See bank reconciliation in Exhibit 4-12 for correction

Answer 1

Solution Requirement: Bank Reconciliation Statement BANK $3,340 Balance, December 31 Add: Deposit in transit Green Valley Bank Reconciliation First National Bank Checking Account 31-Dec-18 BOOKS $5,900 Balance, December 31 Add: $1,600 EFT receipt of Cash dividend Bank collection Interest Revenue $1,600 Error in posting check #333 $7,500 Less: NSF Check $2801 Service charge $3200 EFT payment of Insurance $250 Unrecorded Check # 307 $4900 $1,340 $6,160 Adjusted Book Balance $900 $2,100 $30 $3601 $3,390 $6,730 Less: Outstanding checks Check # 337 Check # 338 Check # 339 Check # 340 $50 $20 $400 $100 $570 Adjusted Bank Balance $6,160