Question

I'm doing a correspondence course on accounting and this is a practice problem on Bank Reconciliation if you could walk me through how you would solve this I would much appreciate it
Please enter journal entries for each of the following, if required. Enter the corresponding number as the description for each entry. Also, the dates must be entered in the format dd/mmm (ie 15/Jan). 1. Outstanding deposit 2. Interest earned 3. NSF cheque 4. Bank service charge 5. Error 6. Notes receivable collected 7. Outstanding cheque ..... . 18,904 Bank statement balance.. Add: X Outstanding deposit. Barton Corporation Bank Reconciliation August 31, 2015 .... 18,450 Book balance. Add: 1,250 X Interest earned_ 19,700 Deduct: Bank service charge. 800 18,900 Adjusted book balance. 18.910 Deduct: Outstanding cheques: #655. Adjusted bank balance.. VO 18,900 Debit To: Barton Corporation Cheques/Charges/Debits Cash Date Desc. PR 31/Aug Balance 30/Sep CR13 30/Sep CD10 Account No. 101 Credit Balance 18,900 23.100 10,350 12,750 4,200 X #655 #672 X #670 X #669 X #666 NSF X #671 #667 #668 Bank service charge 02/Sep 04/Sep 06/Sep 09/Sep 11/Sep 20/Sep 22/Sep 26/Sep 29/Sep 30/Sep Bank Statement September 30, 2015 Deposits/Credits Balance 18,450 800 X 02/Sep 1,250 18,900 1,050 X 04/Sep 900 18,750 1,050 X 06/Sep 950 18,650 950 X 09/Sep 950 18,650 950 17,700 300 17,400 750 16,650 1,250 15,400 800 14,600 10 Interest earned 7 14.597

Answer 1

Bank Reconciliation is a process of identifying the difference that exist between the company's bank balance as per bank statement supplied by bank and cash balance as per company's accounting records. Barton Corporation Bank Reconciliation September 30, 2015 Particulars Amount Amount Particulars Amount Amount Bank Statement Balance $14,597 Book Balance $12,750 Add: Add: Outstanding Deposit $1,400 Interest Earned $7 $15,997 $12,757 Deduct: Deduct: Outstanding Checks #673 $1,250 Bank Service Charge $10 Outstanding Checks #674 $1,400 NSF Check $300 Outstanding Checks #675 $900 Total Deduction ($3,550) Total Deduction ($310) Adjusted Bank Balance $12,447 Adjusted Book Balance $12,447 | Debit Credit $7 $7 Journal Entry Date Particulars 30/Sep Cash Interest Income (To record interest income) 30/Sep Bank Charges Cash (To Record bank service charges) 30/Sep Accounts Receivable Cash (To Record NSF check) $10 $ 10 $300 $300