Question

The information below relates to the Cash account in the ledger of Oriole Company. Balance September 1-$17,400; Cash deposited-$64,410. Balance September 30-$17,744; Checks written-$64,066. The September bank statement shows a balance of $16,762 on September 30 and the following memoranda. Credits Debits Collection of $1,660 note plus interest $40 $1,700 NSF check: Richard Nance $595 Interest earned on checking account $55 Safety deposit box rent $75 At September 30, deposits in transit were $4,620, and outstanding checks totaled $2,553. Prepare the bank reconciliation at September 30. (List items that increase cash balance first. Reconcile cash balance per bank first.) Oriole Company Bank Reconciliation eTextbook and Media List of Accounts

Answer 1

Solution: Part 1 Bank Reconciliation

Oriole Company
Bank Reconciliation at Sep 30
		$
Cash balance per bank statement		16762
Add: Deposits in transit		4620
Less: Outstanding checks		-2553
Adjusted cash balance per bank		18829
Cash balance per books		17744
Add: Notes Collected	1700
interest Earned	55	1755
		19499
Less: NSF Check	595
Safety Deposit Box Rental	75	-670
Adjusted cash balance per books		18829

Solution: Part 2 Adjusting entries

Date	Account Title & Explanation	Debit ($)	Credit ($)
30-Sep	Cash	1700
	Notes Receivable		1660
	Interest Revenue		40
	(To record notes receivable)
30-Sep	Interest Revenue	55
	Cash		55
	(To record interest earned)
30-Sep	Accounts Receivable	595
	Cash		595
	(To record NSF check)
30-Sep	Miscellaneous expense	75
	Cash		75
	(To record safety deposit check)