Semicomplex Bank Reconciliation Study Appendix 6. An employee, Sylvia Nelson, has a personal bank account. Her employer deposits her weekly paycheck automatically each Friday. The employee's check register (checkbook) for October is summarized as follows: Reconciled cash balance, September 30, 20x1 $ 100 Additions Weekly payroll deposits October 3 800 10 800 17 800 24 800 Deposit of check received for gambling debt 25 475 Deposit of check received as winner of cereal contest 31 400 Subtotal $4,175 Deductions Checks written No. 325-339 Check No. 340 Check No. 341 Check No. 342 Cash in bank, October 31, 20X1 1-23 $3,300 26 70 30 90 31 340 3,800 $ 375 The bank statement is summarized in Exhibit 6-6.

Note that NSF means "not sufficient funds." The check deposited on October 25 bounced; by prearrangement with Nelson, the bank automatically lends sufficient amounts (in multiples of $100) to ensure that her balance is never negative. 1. Prepare Nelson's bank reconciliation, October 31, 20X1. 2. Assume Nelson keeps a personal set of books on the accrual basis. Prepare the compound journal entry called for by the bank reconciliation.