Chapter 7: Bank Reconciliation with Journal Entries

Sullivan Company has a Cash account balance of $8,112.62, and on September 30, the bank statement indicated a balance of $9,098.55. Using the following data, prepare a bank reconciliation and any necessary journal entries for Sullivan Company on September 30.

a. Deposits in transit amounted to $3,358.19.

b. Outstanding checks totaled $1,251.12.

c. The bank erroneously charged a $215 check of Soloman Company against the Sullivan bank account.

d. A $15 bank service charge has not yet been recorded by Sullivan Company.

e. Sullivan Company neglected to record $3,000 borrowed from the bank on a 10%, 6-month note. The bank statement shows the $3,000 deposit.

f. An NSF check in the amount of $640 from J. Martin in payment on account has been returned.

g. Sullivan Company recorded a $107 payment for repairs as $1,070.