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: 1 1 5 un Bank Statement TO Winton, Inc. September 30 St. Louis, MO STATE BANK Date Deposits No. Date Charges Date Balance Sept. $2,560 597 Sept. $1,660 Aug. 31 $28,600 2 2,240 607 5 3,700 Sept. 1 29,500 1,700 608 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: 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. Bank reconciliation Journal entries Ending Balance from Bank Statement $ WINTON, INC. Bank Reconciliation September 30 0 0 Add: Check No. 612 for 0 recorded as $ 0 0 0 0 0 Less: NSF Check of D. Walker 0 Less: Outstanding checks (list in numerical order) Check no. Amount 603 0 0 0 0 0 0 0 0 0 0 0 A list of deposits made and checks written during September is shown below: 1,700 Deposits Made Checks Written Sept. 1 $2,240 No. 607 $3,700 4 608 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. Bank reconciliation Journal entries General Journal Description Debit Credit Date Sept 30 $ 0 $ 0 0 0 To correct error in recording check 612. 30 0 0 0 0 To reclassify NSF check as an accounts receivable. 30 0 0 0 0 To record bank service charge. Check
