Exercise 7-9

This information relates to the Cash account in the ledger of Sandhill Company. Balance September 1$19,970; Cash deposited$64,000 Balance September 30$21,170; Checks written$62,800 The September bank statement shows a balance of $20,070 at September 30 and the following memoranda.

Credits				Debits
Collection of electronic funds transfer		$2,030		NSF check: H. Kane		$760
Interest earned on checking account		70		Safety deposit box rent		85

At September 30, deposits in transit were $4,963 and outstanding checks totaled $2,608.

Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.)

SANDHILL COMPANY Bank Reconciliation For the Year Ended September 30, 2017September 30, 2017For the Month Ended September 30, 2017
NSF checkSafety deposit box rentCash balance per bank statementDeposits in transitAdjusted cash balance per bankOutstanding checksElectronic funds transfer receivedInterest earned					$
AddLess :	Interest earnedDeposits in transitSafety deposit box rentElectronic funds transfer receivedOutstanding checksNSF checkCash balance per bank statementAdjusted cash balance per bank
LessAdd :	Adjusted cash balance per bankSafety deposit box rentInterest earnedCash balance per bank statementDeposits in transitOutstanding checksNSF checkElectronic funds transfer received
Outstanding checksSafety deposit box rentInterest earnedCash balance per bank statementAdjusted cash balance per bankDeposits in transitElectronic funds transfer receivedNSF check					$
Safety deposit box rentInterest earnedElectronic funds transfer receivedNSF checkAdjusted cash balance per booksCash balance per booksOutstanding checksDeposits in transit					$
AddLess :
	Safety deposit box rentNSF checkCash balance per booksOutstanding checksElectronic funds transfer receivedInterest earnedAdjusted cash balance per booksDeposits in transit		$
	NSF checkCash balance per booksInterest earnedSafety deposit box rentDeposits in transitAdjusted cash balance per booksOutstanding checksElectronic funds transfer received
LessAdd :
	Safety deposit box rentOutstanding checksElectronic funds transfer receivedAdjusted cash balance per booksInterest earnedNSF checkCash balance per booksDeposits in transit
	Electronic funds transfer receivedDeposits in transitInterest earnedAdjusted cash balance per booksNSF checkOutstanding checksCash balance per booksSafety deposit box rent
Electronic funds transfer receivedAdjusted cash balance per booksCash balance per booksOutstanding checksInterest earnedDeposits in transitNSF checkSafety deposit box rent					$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

Prepare the adjusting entries at September 30, assuming the NSF check was from a customer on account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Sept. 30
	(To record electronic funds transfer received by bank)
Sept. 30
	(To record Interest earned on checking account)
Sept. 30
	(To record NSF check)
Sept. 30
	(To record charges for safety deposit box rent)