EXERCISE ONE: Bank Reconciliation Example Try completing a bank reconciliation for Cartwright Corp. using the information below. The reconciliation form is on the next page. The solution is on the page following the form. Try not to look at the solution first! Follnwinn is a list nf rherks and dennsite rernrded nn C.artwerinht's hnnks' Other Information: 1) The cash balance showing on Cartwright's books as of October 31 st is $9,868. 2) Check number #565 was correctly written and recorded by the bank for $405, however, it was recorded on Cartwright's books for $450. The check was to pay utilities expense. 3) The Debit Memo (DM) was for bank service charges. Cartwright records service charges to the Miscellaneious Expense account. 4) A check previously deposited by Cartwright was returned (DM) for NSF- $135 The check was from Steve Smith in payment of his account. 5) The Credit Memo (CM) was for the collection of an accounts receivable balance from one of Cartwright's customers. BANK RECONCILIATION BANK RECONCILIATION- SOLUTION EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries. EXERCISE ONE: Bank Reconciliation Example Try completing a bank reconciliation for Cartwright Corp. using the information below. The reconciliation form is on the next page. The solution is on the page following the form. Try not to look at the solution first! Follnwinn is a list nf rherks and dennsite rernrded nn C.artwerinht's hnnks' Other Information: 1) The cash balance showing on Cartwright's books as of October 31 st is $9,868. 2) Check number #565 was correctly written and recorded by the bank for $405, however, it was recorded on Cartwright's books for $450. The check was to pay utilities expense. 3) The Debit Memo (DM) was for bank service charges. Cartwright records service charges to the Miscellaneious Expense account. 4) A check previously deposited by Cartwright was returned (DM) for NSF- $135 The check was from Steve Smith in payment of his account. 5) The Credit Memo (CM) was for the collection of an accounts receivable balance from one of Cartwright's customers. BANK RECONCILIATION BANK RECONCILIATION- SOLUTION EXERCISE TWO: BANK RECONCILIATION The June 30th, balance per bank statement was $6,100. The cash balance per books was $8,140. Outstanding checks amounted to $850, and deposits in transit were $2,500. The bank statement contained an NSF check for $550, a service charge for $25, and a debit memo for direct payment of the telephone bill of $175. In addition, it was discovered that a check to pay for utilities was correctly written and paid by the bank for $150, but was recorded on the books as $510. 1) Prepare a bank reconciliation at June 30th. 2) Prepare any necessary journal entries
