Question
Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed: Deposit in transit of $2,560 Outstanding checks no.597 $1,660 no.603 $1,280 The
Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed:
Deposit in transit of | $2,560 | |
Outstanding checks | no.597 | $1,660 |
no.603 | $1,280 | |
The reconciled cash balance on August 31 was | $28,220 |
The following bank statement is available for September:
Bank Statement | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
TO | Winton, Inc. | September 30 | |||||||||
St. Louis, MO | STATE BANK | ||||||||||
Date | Deposits | No. | Date | Charges | Date | Balance | |||||
Sept. | 1 | $2,560 | 597 | Sept. | 1 | $1,660 | Aug. | 31 | $28,600 | ||
2 | 2,240 | 607 | 5 | 3,700 | Sept. | 1 | 29,500 | ||||
5 | 1,700 | 608 | 5 | 2,200 | 2 | 31,740 | |||||
9 | 1,488 | 609 | 9 | 1,104 | 5 | 27,540 | |||||
15 | 2,720 | 610 | 8 | 1,280 | 8 | 26,260 | |||||
17 | 3,080 | 611 | 17 | 976 | 9 | 26,644 | |||||
25 | 2,056 | 612 | 15 | 1,348 | 15 | 28,016 | |||||
30 | 1,360 | 614 | 25 | 1,840 | 17 | 30,120 | |||||
NSF | 29 | 2,056 | 25 | 30,336 | |||||||
SC | 30 | 72 | 29 | 28,280 | |||||||
30 | 29,568 | ||||||||||
Item codes | EC: Error Correction | DM: Debit Memo | CM: Credit Memo | ||||||||
SC: Service Charge | OD: Overdraft | RT: Returned Item | |||||||||
IN: Interest Earned | NSF: Non-sufficient Funds |
A list of deposits made and checks written during September is shown below:
Deposits Made | Checks Written | |||||
---|---|---|---|---|---|---|
Sept. | 1 | $2,240 | No. | 607 | $3,700 | |
4 | 1,700 | 608 | 2,200 | |||
8 | 1,488 | 609 | 1,104 | |||
12 | 2,720 | 610 | 1,280 | |||
16 | 3,080 | 611 | 976 | |||
24 | 2,056 | 612 | 1,492 | |||
29 | 1,360 | 613 | 620 | |||
30 | 2,532 | 614 | 1,840 | |||
$17,176 | 615 | 772 | ||||
616 | 840 | |||||
$14,824 |
The Cash in Bank account balance on September 30 was $30,572. In reviewing checks returned by the bank, the accountant discovered that check No. 612 written for $1,348 for advertising expense, was recorded in the cash disbursements journal as $1,492. The NSF check written for $2,056, 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.
$ WINTON, INC. Bank Reconciliation September 30 0 x Balance from General Ledger 0x Add: Check No. 612 for 0 x recorded as Ending Balance from Bank Statement Add: Deposits not credited by bank 0 x 0 x 0 x Less: NSF Check of D. Walker 0 x Less: Outstanding checks (list in numerical order) Check no. Amount 603 Ox 0 x 0 x Service charge 0 x 0 x 0 x 0X 0 x 0x Reconciled Cash Balance Reconciled Cash Balance $ 0 x Debit Credit 0 $ 0x S 0 x General Journal Date Description Sept 30 Cash in Bank Advertising Expense To correct error in recording check 612. 30 Accounts Receivable Cash in Bank To reclassify NSF check as an accounts receivable. 30 Miscellaneous Expense Cash in Bank To record bank service charge. 0 0 x 0 x 0 x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started