BANK RECONCILIATION

B. J. Nebb deposits all receipts in the bank on the day they are received and makes all payments by check. One June 30, the Ledger Balance of Cash is $2,519 after all posting is completed. The bank statement dated June 30 shows a balance of $2,758. You are given the following information to prepare a bank reconciliation in the spaces provided below.

1. Outstanding checks, $355.
2. A deposit of $482 was placed in the night depository of June 30 and did not appear on the bank statement.
3. The bank included a debit memo for bank service charges, $12.
4. An NSF check for $80 from C. Elmer, a charge customer, was returned by the bank.
5. The bank collected a note for $458 ($430 principal plus $28 in interest.)

Remember correct placement of the dollar sign. This counts toward your grade!

Underline is already done, double underline cannot be done.

1.

Bank Statement Balance
Add:
Deduct:
Adjusted Bank Statement Balance
Ledger Balance of Cash
Add:
Deduct:
Adjusted Ledger Balance of Cash

JOURNAL ENTRIES PERTAINING TO BANK RECONCILIATION

2. Using the information from the bank reconciliation in the previous question, journalize the necessary entries. Omit explanations.

Any amounts that should be blank must have a zero (0)!

Description	Debit	Credit

3. Established a petty cash fund, $165.

Any amounts that should be blank must have a zero (0)!

Description	Debit	Credit

4. The cash register tape indicates $1,359 as income from services rendered. The cash count, including the $100 change fund, is $1,461.

Any amounts that should be blank must have a zero (0)!

Description	Debit	Credit

5. Reimbursed the petty cash fund for the following expenditures of $38 for deliveries and $20 for miscellaneous expenses.

Any amounts that should be blank must have a zero (0)!

Description	Debit	Credit