Question
Bank Reconciliation and Related Journal Entries The book balance in the checking account of Johnson Enterprises as of October 31 is $5,759.10. The bank statement
Bank Reconciliation and Related Journal Entries
The book balance in the checking account of Johnson Enterprises as of October 31 is $5,759.10. The bank statement shows an ending balance of $5,238.00. The following information is discovered by (1) comparing last month's deposits in transit and outstanding checks with this month's bank statement, (2) comparing deposits and checks written per books and per bank in the current month, and (3) noting service charges and other debit and credit memos shown on the bank statement.
Deposits in transit: | 10/29 | $225.00 | ||
10/30 | 415.00 | |||
Outstanding checks: | No. 1635 | 55.10 | ||
No. 1639 | 184.00 | |||
No. 1641 | 138.80 | |||
No. 1653 | 433.00 | |||
Unrecorded ATM withdrawal:* | 200.00 | |||
Bank service charge: | 34.00 | |||
NSF check: | 477.00 |
Error on Check No. 1624 | Checkbook shows it was for $76, but it was actually written for $57. Accounts Payable was debited. |
*Funds were withdrawn by Enoch Johnson for personal use.
Prepare a bank reconciliation as of October 31, 20--.
1. Prepare a bank reconciliation as of October 31, 20--. Johnson Enterprises Bank Reconciliation October 31, 20-- Bank statement balance, October 31 Add: deposits in transit . 5,238 October 29 October 30 $ Deduct: outstanding checks No. 1635 No. 1639 No. 1641 No. 1653 Adjusted bank balance Book balance, October 31 Add: error on Check No. 1624 $ Deduct: Unrecorded ATM withdrawal Deduct: Bank service charge Deduct: NSF check Adjusted book balance $ 2. Prepare the required journal entries. Page: DATE ACCOUNT TITLE DOC. POST. NO. REF. DEBIT CREDIT 1 20-- Oct. 31 1 2. 2 3 Error on Check No. 1624 3 4 4 5 Oct. 31 5 6 6 Unrecorded ATM withdrawal 7 7 8 8 9 Oct. 31 9 10 10 11 Bank service charge 11 12 12 13 Oct. 31 13 14 14 15 NSF check 15
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