Question

Need help in bank reconciliation and general journal.

McDermott Company's bank statement for September 30 showed an ending cash balance of $1,420. The company's Cash account in its general ledger showed a $1,070 debit balance. The following information was also available as of September 30. • The bank deducted $150 for an NSF check from a customer deposited on September 15. • The September 30 cash receipts, $1,300, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement • A $20 debit memorandum for checks printed by the bank was included with the canceled checks. . Outstanding checks amounted to $1,220. • Included with the bank statement was a credit memo in the amount of $900 for an EFT in payment of a customer's account. • Included with the canceled checks was a check for $300, drawn on the account of another company.

Answer 1

McDernott Company
Bank Reconciliation
At September 30
Bank statement balance		1,420	Book balance		1,070
Add:			Add:
Deposit in transit	1,300		EFT collection	900
Correction of bank error	300
		1,600			900
		$3,020			$1,970
Deduct:			Deduct:
Outstanding check	-1,220		Check printing charges	-20
			NSF Check	-150
		-1,220			-170
Adjusted bank balance		$1,800	Adjusted book balance		$1,800

Date	Account Titles and Explanation	Debit	Credit
September 30	Cash	$900
	Accounts receivable		$900
	( To record EFT payment of customer account)
September 30	Accounts receivable	$150
	Cash		$150
	( To record NSF check)
September 30	Check printing charge	$20
	Cash		$20
	( To record check printing charges)

Kindly comment if you need further assistance. Thanks‼!