Question

Question 19 The information below relates to the Cash account in the ledger of Minton Company. Cash deposited-$64,040 Balance September 1-$17,260; Balance September 30-$18,104; Checks written-$63,196 The September bank statement shows a balance of $17,122 on September 30 and the following memoranda. Credits Debits Collection of $1,841 note plus interest $39 Interest earned on checking account $1,880 $54 NSF check: Richard Nance $775 Safety deposit box rent $74 At September 30, deposits in transit were $4,800, and outstanding checks totaled $2,733 Prepare the bank reconciliation at September 30. (List items that increase cash balance first. Reconcile cash balance per bank first.) MINTON COMPANY Bank Reconciliation September 30

Answer 1

MINTON COMPANY
Bank Reconciliation
September 30
Bank balance		17,122
Add: Deposit in transit		4,800
		21,922
Less: Outstanding checks		-2,733
Adjusted Bank Balance		$19,189
Book Balance		18,104
Add: Collection of note receivable	1,880
Interest earned	54
		1,934
		20,038
Less: NSF Check	-775
Safety deposit box rent	-74
		-849
Adjusted Book Balance		$19,189

Journal

Date	Account Titles and Explanation	Debit	Credit
September 30	Cash	$1,880
	Note receivable		$1,841
	Interest revenue		$39
	( To record note receivable)
September 30	Cash	$54
	Interest revenue		$54
	( To record interest earned)
September 30	Accounts receivable - Richard Nance	$775
	Cash		$775
	( To record NSF check)
September 30	Safety deposit rent expense	$74
	Cash		$74
	( To record safety deposit rent)

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