Question

Vern Knight Corporation 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 $915. Listed on the statement are an EFT rent collection of $435, a service charge of $10, checks totaling $90, and a $25 charge for printed checks. In reviewing the cash records, the business identified outstanding checks totaling $450 and a deposit in transit of $1,770. During October, the business recorded a $250 check by debiting Salaries Expense and crediting Cash fo $25. The business's Cash account shows an October 31 balance of $2,150. Read the requirements. Requirement 1. Prepare the bank reconciliation at October 31. Prepare the bank portion of the reconciliation, followed by the book portion of the reconciliation Vern Knight Corporation Requirements Bank Reconciliation October 31, 2018 Bank: 1. Prepare the bank reconciliation at October 31. 2. Journalize any transactions required from the bank reconciliation ADD: Print Done LESS: Choose from any list or enter any number in the input fields and then click Check Answer. 6 parts remaining Clear All Check Answer

Answer 1

Vern Knight Corporation
Bank Reconciliation
October 31, 2018
Bank:
Cash balance according to bank statement	915
Deposit in transit	1,770
	2,685
Outstanding check	-450
Adjusted balance	$2,235
Cash balance according to company's record	2,150
EFT	435
	2,585
Correction of book error	-225
Bank service charge	-10
NSF Check	-90
Check printing charge	-25
Adjusted balance	$2,235

2.

Date	General Journal	Debit	Credit
October 31	Cash	$435
	Accounts receivable		$435
	( To record EFT)
October 31	Accounts payable	$180
	Cash		$180
October 31	Bank service charge	$10
	Cash		$10
	( To record bank service charge)
October 31	Accounts receivable	$90
	Cash		$90
	( To record NSF Check)
October 31	Check Printing charges	$25
	Cash		$25
	( To record check printing charges)
October 31	Salary expense	$225
	Cash		$225
	( To record salary expense)

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