Exercise 7-15

On August 31, 2021, Sheridan Company had a cash balance per its books of $26,660. The bank statement on that date showed a balance of $17,760. A comparison of the bank statement with the Cash account revealed the following.

1.		The August 31 deposit of $17,050 was not included on the August bank statement.
2.		The bank statement shows that Sheridan received EFT deposits from customers on account totalling $2,420 in August. Sheridan has not recorded any of these amounts.
3.		Cheque #673 for $1,320 was outstanding on July 31. It did not clear the bank account in August. All of the cheques written in August have cleared the bank by August 31, except for cheque #710 for $2,600, and #712 for $2,010.
4.		The bank statement showed on August 29 an NSF charge of $139 for a cheque issued by R. Dubai, a customer, in payment of their account. This amount included an $8 service charge by Sheridans bank. The companys policy is to pass on all NSF service charges to the customer.
5.		Bank service charges of $25 were included on the August statement.
6.		The bank recorded cheque #705 for $115 as $151. The cheque had been issued to pay for freight out on a sale. Sheridan had correctly recorded the cheque.

Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.)

SHERIDAN COMPANY Bank Reconciliation August 31, 2021
select an opening name for section one Adjusted cash balance per bankDeposits in transitOutstanding cheque # 712Cash balance per bank statementEFT deposits of Accounts ReceivableBank service chargeNSF chequeError Cheque # 705Outstanding cheque # 673Error Cheque # 710Outstanding cheque # 710EFT deposits of Accounts Payable				$enter a dollar amount
select between addition and deduction AddLess :
select a reconciling item Error Cheque # 710 Error Cheque # 705 EFT deposits of Accounts Payable EFT deposits of Accounts Receivable Cash balance per bank statement Adjusted cash balance per bank Outstanding cheque # 712 Deposits in transit Outstanding cheque # 673 Outstanding cheque # 710 Bank service charge NSF cheque		$enter a dollar amount
select a reconciling item NSF cheque Error Cheque # 710 Outstanding cheque # 673 EFT deposits of Accounts Receivable Bank service charge Cash balance per bank statement Error Cheque # 705 Outstanding cheque # 710 Deposits in transit EFT deposits of Accounts Payable Adjusted cash balance per bank Outstanding cheque # 712		enter a dollar amount
				enter a subtotal of the two previous amounts
				enter a total amount for the first part
select between addition and deduction AddLess :
select a reconciling item Deposits in transit Outstanding cheque # 673 EFT deposits of Accounts Receivable Bank service charge Error Cheque # 705 Outstanding cheque # 712 Outstanding cheque # 710 Error Cheque # 710 NSF cheque EFT deposits of Accounts Payable Adjusted cash balance per bank Cash balance per bank statement		$enter a dollar amount
select a reconciling item NSF cheque EFT deposits of Accounts Receivable Outstanding cheque # 673 Cash balance per bank statement Outstanding cheque # 712 Deposits in transit Bank service charge Error Cheque # 710 Outstanding cheque # 710 Adjusted cash balance per bank Error Cheque # 705 EFT deposits of Accounts Payable		enter a dollar amount
select a reconciling item EFT deposits of Accounts Receivable Bank service charge NSF cheque Error Cheque # 710 Deposits in transit EFT deposits of Accounts Payable Adjusted cash balance per bank Outstanding cheque # 710 Cash balance per bank statement Error Cheque # 705 Outstanding cheque # 673 Outstanding cheque # 712		enter a dollar amount
				enter a subtotal of the three previous amounts
select a closing name for section one Error Cheque # 705NSF chequeBank service chargeAdjusted cash balance per bankEFT deposits of Accounts ReceivableError Cheque # 710Outstanding cheque # 710EFT deposits of Accounts PayableDeposits in transitCash balance per bank statementOutstanding cheque # 673Outstanding cheque # 712				$enter a total amount for section one
select an opening name for section two Adjusted cash balance per booksNSF chequeError Cheque # 710EFT deposits of Accounts ReceivableOutstanding cheque # 673Cash balance per booksEFT deposits of Accounts PayableError Cheque # 705Outstanding cheque # 710Deposits in transitOutstanding cheque # 712Bank service charge				$enter a dollar amount
select between addition and deduction AddLess : select a reconciling item Error Cheque # 705Cash balance per booksOutstanding cheque # 712Deposits in transitNSF chequeOutstanding cheque # 673Outstanding cheque # 710EFT deposits of Accounts ReceivableBank service chargeError Cheque # 710EFT deposits of Accounts PayableAdjusted cash balance per books				enter a dollar amount
				enter a subtotal of the two previous amounts
select between addition and deduction AddLess :
select a reconciling item Adjusted cash balance per books Outstanding cheque # 712 Outstanding cheque # 710 Cash balance per books EFT deposits of Accounts Receivable EFT deposits of Accounts Payable Bank service charge NSF cheque Error Cheque # 710 Error Cheque # 705 Deposits in transit Outstanding cheque # 673		$enter a dollar amount
select a reconciling item EFT deposits of Accounts Payable Adjusted cash balance per books Bank service charge Outstanding cheque # 712 Error Cheque # 705 Cash balance per books EFT deposits of Accounts Receivable Deposits in transit Outstanding cheque # 673 Outstanding cheque # 710 NSF cheque Error Cheque # 710		enter a dollar amount
				enter a subtotal of the two previous amounts
select a closing name for section two Outstanding cheque # 712Error Cheque # 705EFT deposits of Accounts PayableOutstanding cheque # 710Deposits in transitOutstanding cheque # 673Error Cheque # 710Adjusted cash balance per booksCash balance per booksEFT deposits of Accounts ReceivableBank service chargeNSF cheque				$enter a total amount for section two