Question

The September 30 bank statement for Bennett Company and the September ledger accounts for cash are summarized here: Deposits $26,700 BANK STATEMENT Checks Balance, September 1 Deposits recorded during September Checks cleared during September $27,000 NSF checks-Betty Brown Bank service charges 53 Balance, September 30 Balance $ 6,650 33, 350 6,350 6,240 6,187 6,187 110 Sept. 1 Balance Sept. Deposits Cash (A) 6,650 Sept. Checks written 29,050 29,650 No outstanding checks and no deposits in transit were carried over from August; however, there are deposits in transit and checks outstanding at the end of September. Required: 1. Reconcile the bank account. Company's Books Ending balance per cash account Additions: BENNETT COMPANY Bank Reconciliation, September 30 Bank Statement Ending balance per bank statement Additions: Deposit in transit Deductions: NSF check - Betty Brown Deductions: Outstanding checks Correct cash balance Correct cash balance

Answer 1

Rea 1 BENNETT COMPANY Bank Reconciliation september 30 company's BOOK Bank statement $6187 Ending balance per cash ALC $6050 Ending bal perbank statement Addition : none Additions: Deduction : Deposit in tocinsit. 13 ank service charge 2350 NSF check Getty Brown (110) Deduction: loutstanding checks ( 2650 (Gee) concct cash balance $5887 consect cash balance 99887 Deposit in toan sit' = $_22000 - $26 700 = E 29050 - $26 700 - $ 2350 e outstanding checks - $ 29650-29050 - $6.00 29650 - 27000 - 2650 (2) journal entry : pate Credit Account Name Debit Bank service charge expense $53 TO cash eto necorel hank sewice charge) ( 2) Account Receivable BeHyBrown 110. "TO Cash CTO second customa check se tumed)

Bl cash balance $5887 TOTO amount of cash + 5887