Question

Shown is the information needed to prepare a bank reconciliation for Warren Electric at December 31 1. At December 31, cash per the bank statement was $15,200, cash per the company's records was $19,000. 2. Two debit memoranda accompanied the bank statement: service charges for December of $22, and a $700 check drawn by Jane Jones marked NSF. 3. Cash receipts of $10,000 on December 31 were not deposited until January 4. 4. The following checks had been issued in December but were not included among the paid checks returned by the bank no. 620 for $1,000, no. 630 for $2,300, and no. 641 for $3,622 a. Prepare a bank reconciliation at December 31. b. Prepare the necessary journal entry or entries to update the accounting records Complete this question by entering your answers in the tabs below. Required A Required B Prepare a bank reconciliation at December 31. WARREN ELECTRIC Bank Reconciliation

Answer 1

WARREN ELECTRIC BANK RECONCILIATION Particulars Amount Balance as per Bank Statement ADD: Deposit in Transit Amount $ 15,200 S S 10,000 25,200 LESS: Checks outstanding 620 630 641 Adjusted Cash balance S S 1,000 2,300 3.622S $ 6,922 18,278 S 19,000 Balance as per Depositors Records LESS: Bank's service charges NSF check Jane Jones Adjusted Cash Balance $ 22 700 S 722 $ 18,278 S.No Debit Credit 22 Accounts Titles and Explanations Bank Service Charges Accounts Receivable of jane Jones Cash (To Record Adjusting entry) 700 S 722