Exercise 7-9

This information relates to the Cash account in the ledger of Sheridan Company. Balance September 1$18,810; Cash deposited$64,000 Balance September 30$20,010; Checks written$62,800 The September bank statement shows a balance of $18,910 at September 30 and the following memoranda.

Credits				Debits
Collection of electronic funds transfer		$2,020		NSF check: H. Kane		$750
Interest earned on checking account		55		Safety deposit box rent		70

At September 30, deposits in transit were $4,938 and outstanding checks totaled $2,583.

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

SHERIDAN COMPANY Bank Reconciliation For the Year Ended September 30, 2017For the Month Ended September 30, 2017September 30, 2017
Cash balance per bank statementInterest earnedNSF checkSafety deposit box rentAdjusted cash balance per bankDeposits in transitOutstanding checksElectronic funds transfer received					$
LessAdd :	Cash balance per bank statementSafety deposit box rentAdjusted cash balance per bankOutstanding checksDeposits in transitElectronic funds transfer receivedNSF checkInterest earned
AddLess :	Electronic funds transfer receivedAdjusted cash balance per bankCash balance per bank statementDeposits in transitInterest earnedOutstanding checksNSF checkSafety deposit box rent
Electronic funds transfer receivedSafety deposit box rentCash balance per bank statementInterest earnedAdjusted cash balance per bankOutstanding checksDeposits in transitNSF check					$
Cash balance per booksDeposits in transitAdjusted cash balance per booksSafety deposit box rentOutstanding checksElectronic funds transfer receivedNSF checkInterest earned					$
AddLess :
	Adjusted cash balance per booksSafety deposit box rentCash balance per booksOutstanding checksDeposits in transitNSF checkElectronic funds transfer receivedInterest earned		$
	Outstanding checksElectronic funds transfer receivedSafety deposit box rentDeposits in transitCash balance per booksInterest earnedAdjusted cash balance per booksNSF check
AddLess :
	NSF checkElectronic funds transfer receivedSafety deposit box rentCash balance per booksInterest earnedAdjusted cash balance per booksDeposits in transitOutstanding checks
	Safety deposit box rentNSF checkCash balance per booksAdjusted cash balance per booksDeposits in transitOutstanding checksElectronic funds transfer receivedInterest earned
Outstanding checksNSF checkCash balance per booksAdjusted cash balance per booksSafety deposit box rentDeposits in transitElectronic funds transfer receivedInterest earned					$

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)

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