Question
Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed: Deposit in transit of$1,280Outstanding checksno.597$830no.603$640The reconciled cash balance on August 31 was$14,110
Bank ReconciliationThe bank reconciliation made by Winton, Inc., on August 31 showed:
Deposit in transit of$1,280Outstanding checksno.597$830no.603$640The reconciled cash balance on August 31 was$14,110
The following bank statement is available for September:
Bank StatementTOWinton, Inc.September 30St. Louis, MOSTATE BANKDateDepositsNo.DateChargesDateBalanceSept.1$1,280597Sept.1$830Aug.31$14,30021,12060751,850Sept.114,750585060851,100215,87097446099552513,770151,3606108640813,130171,54061117488913,322251,028612156741514,00830680614259201715,060NSF291,0282515,168SC30362914,1403014,784
Item codesEC: Error CorrectionDM: Debit MemoCM: Credit MemoSC: Service ChargeOD: OverdraftRT: Returned ItemIN: Interest EarnedNSF: Non-sufficient Funds
A list of deposits made and checks written during September is shown below:
Deposits MadeChecks WrittenSept.1$1,120No.607$1,85048506081,1008744609552121,360610640161,540611488241,02861274629680613310301,266614920$8,588615386616420$7,412
The Cash in Bank account balance on September 30 was $15,286. In reviewing checks returned by the bank, the accountant discovered that check No. 612 written for $674 for advertising expense, was recorded in the cash disbursements journal as $746. The NSF check written for $1,028, which Winton deposited on September 24, was a payment on account from customer D. Walker.
Required
a. Prepare a bank reconciliation for Winton, Inc., at September 30.
b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.
a.
WINTON, INC.
Bank Reconciliation
September 30Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
$Answer
Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
$Answer
Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
Answer
Add: Check No. 612 forAnswer
Answer
recorded asAnswer
Answer
Answer
Less: Outstanding checks (list in numerical order)Less: NSF Check of D. WalkerAnswer
Check no.Amount603Answer
Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
$Answer
Answer
Ending Balance from Bank Statement
Balance from General Ledger
Add: Deposits not credited by bank
Service charge
Reconciled Cash Balance
$Answer
b.
General JournalDateDescriptionDebitCreditSept30Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
$Answer
$Answer
Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
Answer
Answer
To correct error in recording check 612.
30Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
Answer
Answer
Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
Answer
Answer
To reclassify NSF check as an accounts receivable.
30Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
Answer
Answer
Answer
Accounts Receivable
Advertising Expense
Cash in Bank
Miscellaneous Expense
Answer
Answer
To record bank service charge.
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
