Question

BANK RECONCILIATION XTRA CREDIT Balboa company sells refrigerators to the general public. On November 30,2009 Its cash ledger balance was 15,890. The bank balance was 17,420 A review of Balboa's transactions revealed the following: • Balboa wrote 75,000 worth of checks. However a check for $2,500 from September and one for $3200 from August had not cleared the bank as of November 30. Cash receipts total 5,200. An EFT for 1000 was made to Jones Inc. for refrigerators purchased on credit. A check that was written for 2300 was recorded by the bank for 300. A check for 4100 that was made out to Sampson Rentals for the monthly rent was recorded in the cash ledger for 1400. Johnson a customer made a $7500 loan payment in the bank. The customer signed a note when the loan was made. (Loan principal was 7000 and interest was 500) An NSF check for 3120 was returned and a $30 fee was charged to Balboa's account A check for 2,000 made out to Lewis Inc. was correctly recorded by the bank but was never recorded in the cash ledger. The bank paid $380 for interest earned on the checking account.

Answer 1

BANK RECONCILIATION
Ending balance per bank statement	17420
Add: Cash receipts	5200
Less: Chq error (-300 + 2300)	-2000
Less: Outstanding checks (-2500 - 3200)	-5700
Adjusted cash balance per bank	14920
Ending balance per cash books	15,890
Add: Interest income	380
Less: EFT payment	-1000
Less: NSF Checks (-3120 - 30)	-3150
Less: Rent error (- 1400 +4100)	-2700
Add: Customer receipts (7000 + 500)	7500
Less: Chq to Lewis was not recorded	-2000
Adjusted cash balance per books	14,920

Particulars	Debit	Credit
Cash	380
Interest revenue		380
Cash	7500
Notes receivable		7000
Interest revenue		500
Service charge expense	3,120
Accounts receivable	30
Cash		3,150
Accounts receivable	1,000
Cash		1,000
Rent expense	2700
Cash		2700
Accounts receivable	2000
Cash		2000