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7. Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's Cash account in its general ledger (its book balance)
7. Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's Cash account in its general ledger (its book balance) showed a $995 debit balance, The following information was also available as of September 30. a. A $125 debit memoranda is included with the bank statement and dealt with a customer's check for S100 marked NSF and returned to Brown Company by the bank. In addition, the bank charged the company's a $25 processing fee. b. The September 30 cash receipts, S1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement c. A S15 debit memorandum for checks printed by the September 30 bank was included with the canceled checks. d. Outstanding checks amounted to $1,145 e. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account. f. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc. 1. Using the table below, prepare a bank reconciliation as of September 30. Six (6) points 2. On the following page prepare any necessary adjusting journal entries necessary as a result of the bank reconciliation. Adjusting entry explanations must be included. Four (4) points Brown Company Bank Reconciliation September 30 Description Amount Description Amount Bank Statement Balance Additions to Bank Statement Balance Book Balance Additions to Book Balance Deductions from Bank Statement Balance Deductions from Book Balance Adjusted Bank Adjusted Book
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