Question

i want to practice this problem but i have no idea how to do bank recs like this! can someone help explain how to do this and procide examples? thank u!

JUU UUR CUCCUOI WUJ d. The correct amount of check 1419 is $431. Povich Industrial, Inc., mistakenly recorded the check for $341. Requirement 1. Prepare Povich Industrial, Inc.'s bank reconciliation at September 30. P7-43A. Preparing a bank reconciliation (Learning Objective 1) 20-25 min. The December bank statement of Charly's Burger Haven, Inc., just arrived from United Bank. December Bank Statement: Bal, Dec 1 Deposits: $13,815 EFTrent $1,000 350 EFT-deposit Interest Checks 1,358 NO Amount 650 807 808 1668 Other Charges: Service charge NSF check 1998 NSF check #201 Bal, Dec 31 (266) $13.382 80 / W>= MacBook Air

Answer 1

1.

Bank reconciliation statement as on Dec 31

Particulars	Amount $	Amount ^
Balance as per cash account as on 31 Dec		12,200.00
Add Check issued but not paid
800	429.00
802	75.00
806	39.00
809	123.00
810	231.00
811	48.00	945.00
		13,145.00
Less Deposit not yet credited		(330.00)
		12,815.00
Less error on check incorrectly paid by bank 1668		(525.00)
		12,290.00
Add EFT ( $1,000.00 + $350.00)		1350.00
		13,640.00
Less bank service charges and NSF checks
Service charges	20.00
NSF Check #998	75.00
NSF Check #201	171.00	(266.00)
		13,374.00
Add Bank interest received		8.00
Balance as per Bank statement on 31 Dec		13,382.00

2. Kindly note that Check issued and cash deposited were already recorded in the cash book so no further entries are required. The error on check 1668 not issued by us , needs to be corrected by bank does not need any entry in cash book. The following transactions need not to be recorded in the cash book these transactions have recognized by bank and not recorded yet in the  cash book.

We need to debit the cash account and credit necessary Customer account for the EFT.

An entry is needed to record for service charges by debiting the service charges account and crediting the cash account.

The NSF checks entered in the cash book needs to reversed by debiting the respective customer account and crediting the cash account. These checks were unpaid by the payee bank because of no sufficient funds.

The interest paid by the bank also needs to be recorded in the cash account by debiting the same and crediting the interest received account.