Question

We Prepare for Future CareersJiS Re Group work # Question 1: (10 Marks) The cash balance per books for Dexter Company on September 30, 2008 is $10,740.93. The following checks and receipts were recorded for the month of October, 2008: Checks Receipts No. Amount No. Amount 17 $372.96 22 578.84 18 $780.62 23 $1,687.50 19 $157.00 24 921.30 20 $587.50 25 246.03 21 $234.15 Amount $843.86 $941.54 $808.58 $967.00 Date 10/ 5 10/21 10/27 10/30 In addition, the bank statement for the month of October is presented below: Balance This Statement Balance Deposits and Credits Checks and Debits No. Total Amount Last Statement No. Total Amount $5,404.84 Checks and other debits $9,178.36 10 $3,632.19 $10,951.01 Deposits Date Balance No. Amount No. Amount No. Amount 18 708.62 24 921.30 19 157.00 25 246.03 21 234.15 14 148.29 17 372.96 22 578.84 5,484.38 10/ 1 $9,875.31 843.86 10/ 8$9,219.03 941.54 10/23 $9,541.58 10/29 $10,101.01 808.58 1,100.00 CM 10/31 $10,951.01 25.00 SC 240.00 NSF Symbols: NSF (Not sufficient funds) SC (Service charge) CM (Credit Memo) Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from S. King, a customer, in settlement of an accounts receivable. An entry had not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $60 whic has not been accrued. The bank service charge is $25.00 Instructions (a) Prepare a bank reconciliation at October 31

Answer 1

Dexter Company
	Bank Reconciliation
	October 31, 2008
	Cash Balance per Bank Statement		$10,951.01
	Add: Deposit in transit		$967.00
			$11,918.01
	Less: Outstanding checks
	No. 20	$587.50
	No. 23	$1,687.50	$2,275.00
	Adjusted balance per bank		$9,643.01
	Cash Balance per Book		$8,736.01
	Add: Error in recording check no.	$72.00
	Note collected by bank	$1,100.00	$1,172.00
			$9,908.01
	Less: Bank service charges	$25.00
	NSF check	$240.00	$265.00
	Adjusted Balance per Book		$9,643.01
	Working Note
	9/30 balance per books	$10,740.93
	+ Receipts	$3,560.98
	– Checks written	$5,565.90
	10/31 balance per books	$8,736.01