Problem

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, 2010, Peter Chen, attorney-at-law, received his September bank statement from First Texas National Bank. Enclosed with the bank statement, which appears on page 289, 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, 2010.

2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries September 30, 2010.

DATE

TRANSACTIONS

Sept. 1

Balance $6,500

1

Check 104 100

3

Check 105 10

3

Deposit 500

6

Check 106 225

10

Deposit 410

11

Check 107 200

15

Check 108 75

21

Check 109 60

22

Deposit 730

25

Check 110 16

25

Check 111 80

27

Check 112 140

28

Deposit 900

FIRST TEXAS NATIONAL BANK

Peter Chen, Attorney-at-Law Account Number: 22-8654-30

3510 North Central Expressway

Dallas, TX 75232-2709 Period Ending September 30, 2010

CHECKS

 

DEPOSITS

DATE

BALANCE

 

Beginning Balance

 

August 31

6,500.00

 

 

500.00+

September 3

7,000.00

100.00-

 

 

September 6

6,900.00

200.00-

10.00-

410.00+

September 11

7,100.00

225.00-

 

 

September 15

6,875.00

60.00-

 

 

September 19

6,815.00

 

 

730.00+

September 23

7,545.00

80.00-

16.00-

 

September 25

7,449.00

7.50- SC

118.00- DM

 

September 28

7,323.50

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

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