The December 1, bank statement of Billy’s Hamburger just arrived from Safety Bank.

To prepare the bank reconciliation, you gather the following additional data:

a. The following checks are outstanding on December 31:

b. On December 31, Billy’s Hamburger’s treasurer deposited $330, but this deposit does not appear on the bank statement.

c. The bank statement includes a $410 deduction for a check written by Jenny’s Jump Ropes rather than Billy’s Hamburger. Billy’s Hamburger notified the bank of this bank error.

d. Billy’s Cash account shows a balance of $12,000 on December 31.
Requirements 1. Prepare the bank reconciliation for December 31.
2. Record the journal entries called for by the reconciliation. Include an explanation for each entry.

Transcribed Image Text:

Bank Statement for December Bal, Dec 1 Deposits: EFT-rent EFT-deposit $700 400 $13,384 Interest 12 1,112 Checks: No. Amount 807 $600 808 200 1668 410 (1,210) Other Charges: Service charge NSF check #998 NSF check #201 Bal, Dec 31 $ 19 60 205 (284) $13,002