Question

9) The following information is available from the books of the Svedsen Company and their band os of October 31, 2014: Bank Balance $2,979.72 Book Balance 2,952.49 Deposits in transit 658.50 Outstanding Checks 703.83 Bank service charge 3.16 Bank error - they charged interest 12.50 NSF check 118.94 Interest earned and credited by the bank 98.50 Check number 1116 was recorded by the bookkeeper as $64 it should be $46. Prepare a Bank Reconciliation. Also prepare the journal entries for the month of October (18 points)

Answer 1

		Bank Reconciliation
	Bank Balance					2,979.72
	Add:Deposit in transit					658.5
	Bank error - interest charged					12.5
						3,650.72
	less:outstanding checks					703.83
	Adjusted bank balance					2,946.89
	Book balance					2,952.49
	Add:interest earned					98.5
	error in recording check					18
						3,068.99
	less:
	NSF				118.94
	Bank service charge				3.16	122.1
	Adjusted cash balance					2,946.89
	Journal entries
	Account titles & Explanations					Debit	Credit
	Cash					98.5
	interest income						98.5
	cash					18
	accounts payable						18
	accounts receivable					118.94
	cash						118.94
	bank charges					3.16
	cash						3.16