The bank portion of the bank reconciliation for Katsaris Company at August 31, 2024, was as follows:

The unadjusted cash balance per books on September 30, 2024, was $10,228. The September bank statement showed the following:

Additional information:
1. The deposit of $3,145 on September 15 is an electronic transfer from a customer in payment of its account. The amount includes $65 of interest, which Katsaris Company had not previously accrued.
2. The NSF for $1,027 is for a $1,015 cheque from a customer, Hopper Holdings, in payment of its account, plus a $12 processing fee. The company’s policy is to pass on all NSF processing fees to the customer.
3. SC represents bank service charges for the month. The bank made one error: it recorded cheque #4475 incorrectly. Any other errors were made by Katsaris Company. The cash records per the company’s books for September showed the following:

Instructions
a. Prepare a bank reconciliation at September 30.
b. Prepare the necessary journal entries at September 30.

Taking It Further

The company will prepare entries to record items found in the above bank reconciliation (see part [b] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Katsaris Company’s bank reconciliation.

Transcribed Image Text:

Cash balance per bank Add: Deposits in transit KATSARIS COMPANY Bank Reconciliation August 31, 2024 Less: Outstanding cheques # 4451 #4460 #4461 #4462 #4464 Adjusted cash balance per bank $1,740 549 723 1,840 620 $13,229 2,350 15,579 5,472 $10,107