Preparing a bank reconciliation statement and journalizing entries to adjust the cash bala...

Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.

On October 7, 2016, Peter Chen, Attorney-at-Law, received his September bank statement from First Texas National Bank. Enclosed with the bank statement was a debit memorandum for $118 that covered an NSF check issued by Annette Cole, a credit customer. The firm’s checkbook contained the following information about deposits made and checks issued during September. The balance of the Cash account and the checkbook on September 30 was $8,134.

INSTRUCTIONS

1. Prepare a bank reconciliation statement for the firm as of September 30, 2016.

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2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries September 30, 2016.

Analyze: How many checks were paid (cleared the bank) according to the September 30 bank statement?