Question

P6-16 LO 6.8 Reconciliation of Bank and Company Cash Amounts (Appendix 6.1) Miller Corporation's December 31, 2016, bank statement showed a $2,049.25 balance. On this date, Miller's Cash account reflected a $325.60 overdraft. In reconciling these amounts, the following information is discovered: 1. Cash on hand for undeposited sales receipts, December 31, $130.25. 2. Customer NSF check returned with bank statement, $420.40. 3. Cash sales of $640.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank. 4. Note receivable of $2,500 and interest of $25 collected by the bank and not recorded on the books. 5. Deposit in transit December 31, $350.00. 6. A customer check for $290.40 in payment of its account was recorded on the books at $940.20. 7. Outstanding checks, $2,040.55. Includes a duplicate check of $70.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount. Required: 1. Prepare a December 31 bank reconciliation for Miller. 2. Prepare any journal entries necessary by Miller to record the information from Requirement 1.

Answer 1

3olu tion Bont Reronciliation 3tatement Amount (B) Amount Bal once Dec 3) 201 2,049 25 an at nol- deposied Add Carh alo 130 25 Deposit in hronsik 480.25 350.6D Ched fash (2040.55) loss mgment gtepped Ajusted onk Balbnce 8&.9S Reconciliatiom 3tatement Bank Amaunt () (325.60) Amount (8) Balonre B0ok Add: Note receivgble an at Dec'31 2500 not 25 gnlerest not 2525 re curded (420.40) (660.25) (৫५१.४०) SSF check retion less Cuotmo Conn alar amount micsing Prmount uron (1a1D.45 940.20) 290.uo 488.95 Scanned Ped Botk Balance CamScann

Journak ntrien Debit ( Credi (8) 20 4O Accounts Receivable 20 40 Bank cheok refred) (cuotuman N.SF GUO 2S the Canh 640.25 (Being carh amount missing) 2525 Bont 2SS0 Note Receivable 9nterect ncme 25 note receivable &nerec bod recarded in ५१.४० Recevable G49.80 Accounts Banic Bong omount noply rerceded CScanne ied) LamScanner