Question

1. CUNILIUL L UI howed a balance of Bank Reconciliation The Seattle First Company's bank statement for the month of September: cated a balance of $13,375. The company's cash account in the general ledger showed a bal $10,030 on September 30. Other relevant information includes the following: 1. Deposits in transit on September 30 total $9,850. 2. The bank statement shows a debit memorandum for a $95 check printing charge. 3. Check number 238 payable to Simon Company was recorded in the accounting records for $406 and cleared the bank for this same amount. A review of the records indicated that the Simona count 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 $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. 6. The bank returned an NSF check in the amount of $1,110. 7. The bank included a credit memorandum for $2,620 representing a collection of a customer's note. The principal portion was $2,400 and the interest portion was $220. The interest had not been accrued. Required 7. Prepare the September bank reconciliation for Seattle First Company. 3. Prepare any necessary adjusting entries.

Answer 1

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Seattle First's Company
Answer a
Bank reconciliation statement	Amount			Amount
Balance as per books	10,030.00		Balance as per bank	13,375.00
Add:			Add:
5. Cash paid to accounts payable recorded incorrectly (754-574)	180.00		1. Deposit in transit	9,850.00
7. Bank credit memorandum for receipt from customer	2,620.00
Less:			Less:
2. Bank debit memorandum for cheque printing charges	95.00		4. Outstanding cheque	11,600.00
6. Bank debit memorandum for NSF	1,110.00
Reconciled balance as per books	11,625.00		Reconciled balance as per bank	11,625.00

Answer b
Adjusting journal entries
Event	Account	Debit	Credit
2	Bank charges	95.00
	Cash		95.00
5	Cash	180.00
	Accounts Payable		180.00
6	Customer	1,110.00
	Cash		1,110.00
5	Cash	30.00
	Customer		30.00
7	Cash	2,620.00
	Note Receivable		2,400.00
	Interest Income		220.00