Question

Evan Harrison Company operates four bowling alleys. The business just received the October 31, 2018, bank statement from City National Bank, and the statement shows an ending balance of S925. Listed on the statement are an EFT ren collection of S400, a service charge of S8, NSF checks totaling S85, and a $20 charge for printed checks. In reviewing the cash records, the business identified outstanding checks totaling $470 and a deposit in transit of $1,785. During October, the business recorded a $270 check by debting Salaries Expense and crediting Cash for $27. The business's Cash account shows an October 31 balance of $2,196 Read the requirements. Evan Harrison Company Bank Reconciliation October 31, 2018 Bank: ADD: LESS: Books ADD: LESS:

Answer 1

Evan Harrison Company
Bank Reconciliation
October 31, 2018
Bank:
Balance per statement		925
ADD: Deposit in transit		1785
		2710
LESS: Outstanding checks		470
Adjusted balance		2240
Books:
Balance per Cash account		2196
ADD: EFT rent collection	400	400
		2596
LESS: Service charge	8
NSF checks	85
Check printing charge	20
Error in recording check ($270 - $27)	243	356
Adjusted balance		2240

Date	General Journal	Debit	Credit
Oct. 31	Cash	400
	Rent revenue		400
	(To record EFT rent collection by bank)
Oct. 31	Salaries expense	243
	Cash		243
	(To rectify error in recording check)
Oct. 31	Accounts receivable	85
	Cash		85
	(To record NSF checks)
Oct. 31	Bank expense	20
	Cash		20
	(To record check printing charges)
Oct. 31	Miscellaneous expense	8
	Cash		8
	(To record service charges)