Exercise 8-12 a-b (Video)

The information below relates to the Cash account in the ledger of Sunland Company.

Balance September 1$17,440;		Cash deposited$64,310.
Balance September 30$18,084;		Checks written$63,666.

The September bank statement shows a balance of $17,102 on September 30 and the following memoranda.

Credits				Debits
Collection of $1,834 note plus interest $36		$1,870		NSF check: Richard Nance		$765
Interest earned on checking account		$51		Safety deposit box rent		$71

At September 30, deposits in transit were $4,790, and outstanding checks totaled $2,723

Prepare the bank reconciliation at September 30. (List items that increase cash balance first.)

SUNLAND COMPANY Bank Reconciliation For the Month Ended September 30For the Year Ended September 30September 30
Cash Balance Per Bank StatementDeposits in TransitOutstanding ChecksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BankInterest EarnedNSF CheckSafety Deposit Box Rent					$
LessAdd :	Cash Balance Per Bank StatementDeposits in TransitOutstanding ChecksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BankInterest EarnedNSF CheckSafety Deposit Box Rent
AddLess :	Cash Balance Per Bank StatementDeposits in TransitOutstanding ChecksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BankInterest EarnedNSF CheckSafety Deposit Box Rent
Cash Balance Per Bank StatementDeposits in TransitOutstanding ChecksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BankInterest EarnedNSF CheckSafety Deposit Box Rent					$
Deposits in TransitOutstanding ChecksCash Balance Per BooksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BooksInterest EarnedNSF CheckSafety Deposit Box Rent					$
AddLess :
	Deposits in Transit Outstanding Checks Cash Balance Per Books Collection of Note Receivable Bank Service Charge Adjusted Cash Balance Per Books Interest Earned NSF Check Safety Deposit Box Rent		$
	Deposits in Transit Outstanding Checks Cash Balance Per Books Collection of Note Receivable Bank Service Charge Adjusted Cash Balance Per Books Interest Earned NSF Check Safety Deposit Box Rent
AddLess :
	Deposits in Transit Outstanding Checks Cash Balance Per Books Collection of Note Receivable Bank Service Charge Adjusted Cash Balance Per Books Interest Earned NSF Check Safety Deposit Box Rent
	Deposits in Transit Outstanding Checks Cash Balance Per Books Collection of Note Receivable Bank Service Charge Adjusted Cash Balance Per Books Interest Earned NSF Check Safety Deposit Box Rent
Deposits in TransitOutstanding ChecksCash Balance Per BooksCollection of Note ReceivableBank Service ChargeAdjusted Cash Balance Per BooksInterest EarnedNSF CheckSafety Deposit Box Rent					$

Prepare the adjusting entries at September 30, assuming (1) the NSF check was from a customer on account, and (2) no interest had been accrued on the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
Sept. 30
	(To record note receivable.)
Sept. 30
	(To record interest earned.)
Sept. 30
	(To record NSF check.)
Sept. 30
	(To record safety deposit rent.)