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Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed: Deposit in transit of $1,280 Outstanding checks no.597 $830 no.603 $640 The

Bank Reconciliation The bank reconciliation made by Winton, Inc., on August 31 showed:

Deposit in transit of $1,280
Outstanding checks no.597 $830
no.603 $640
The reconciled cash balance on August 31 was $14,110

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 $1,280 597 Sept. 1 $830 Aug. 31 $14,300
2 1,120 607 5 1,850 Sept. 1 14,750
5 850 608 5 1,100 2 15,870
9 744 609 8 640 5 13,770
15 1,360 610 9 552 8 13,130
17 1,540 611 15 488 9 13,322
25 1,028 612 17 674 15 14,194
30 680 614 25 920 17 15,060
NSF 29 1,028 25 15,168
SC 30 36 29 14,140
30 14,784
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 $1,120 No. 607 $1,850
4 850 608 1,100
8 744 609 640
12 1,360 610 552
16 1,540 611 488
24 1,028 612 746
29 680 613 310
30 1,266 614 920
$8,588 615 386
616 420
$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.

  • Bank reconciliation
  • Journal entries
WINTON, INC. Bank Reconciliation September 30
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer Add: Check No. 612 for Answer
Answer recorded as Answer Answer
Answer
Less: Outstanding checks (list in numerical order) Less: NSF Check of D. Walker Answer
Check no. Amount
603 Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer Answer
Answer Answer
Answer Answer
Answer Answer Answer
AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer AnswerEnding Balance from Bank StatementBalance from General LedgerAdd: Deposits not credited by bankService chargeReconciled Cash Balance Answer

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