This information relates to the Cash account in the ledger of Espejel Company. Balance September 1$16,400; Cash
Question:
This information relates to the Cash account in the ledger of Espejel Company.
Balance September 1—$16,400; Cash deposited—$64,000 Balance September 30—$17,600; Checks written— $62,800 The September bank statement shows a balance of $16,422 at September 30 and the following memoranda.
Credits Debits Collection of $1,800 note plus interest $30 $1,830 NSF check: J. Hower $360 Interest earned on checking account 45 Safety deposit box rent 50 At September 30 deposits in transit were $5,026 and outstanding checks totaled $2,383.
Instructions
(a) Prepare the bank reconciliation at September 30, 2007.
(b) Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471730514
4th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso