Question

McDermott Company's bank statement for September 30 showed an ending cash balance of $1,364. The company's Cash account in its general ledger showed a $1,010 debit balance. The following information was also available as of September 30. The bank deducted $130 for an NSF check from a customer deposited on September 15. • The September 30 cash receipts, $1,260, 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 $16 debit memorandum for checks printed by the bank was included with the canceled checks. Outstanding checks amounted to $1160. • Included with the bank statement was a credit memo in the amount of $880 for an EFT in payment of a customer's account • Included with the canceled checks was a check for $280, drawn on the account of another company. Required: a. Prepare a bank reconciliation as of September 30, b. Prepare the journal entries for the items on the company's bank reconciliation as of September 30, Complete this question by entering your answers in the tabs below. Required a Required B Prepare a bank reconciliation as of September 30.

Answer 1

Bank Reconciliation
Balance as per bank statement		$            1,364
Add :
Cheque of another company	$             280
Deposit in Transit	$          1,260	$            1,540
		$            2,904
Deduct :
Checks Outstanding		$            1,160
Adjusted Cash Balance		$            1,744
Balance as per books		$            1,010
Add : EFT by customer		$                880
		$            1,890
Deduct :
NSF Check	$             130
Service Charges	$                16	$                146
Adjusted Cash Balance		$            1,744

Account Titles	Debit	Credit
Cash	$             880
Accounts Receivable		$                880
Accounts Receivable	$             130
Cash		$                130
Bank Service Charges	$                16
Cash		$                  16

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