Question
Following is the general format of a bank reconciliation with the various categories numbered (1) through (4). Balance per bank statement $XX,XXX Items to be
Following is the general format of a bank reconciliation with the various categories numbered (1) through (4).
Balance per bank statement $XX,XXX
Items to be added: (1)
Items to be deducted: (2)
Corrected bank balance $YY,YYY
Balance per books $AA,AAA
Items to be added: (3)
Items to be deducted: (4)
Corrected cash balance $YY,YYY
Instructions
a. To the left of the following items, write the number of the place in which the reconciling items would appear on a November bank reconciliation. If any items would not appear on the bank reconciliation, put an NA beside the item.
1. The October bank service charge of $25 was recorded in the books in November.
2. An NSF cheque for $450 was returned with the November bank statement. This cheque will be redeposited in December. The firm has not yet made an entry for this.
3. The first $5,000 deposit shown on the November bank statement was recorded in the books on October 31.
4. The November bank service charge of $21 is included on the November bank statement.
5. The bank collected a $4,500 note receivable for the firm during November plus $125 interest. The firm has not yet recorded this receipt.
6. $15,000 of cheques written in November have not cleared the bank by November 30.
7. All $18,000 of cheques written in October, which had not cleared the bank at October 31, cleared the bank in November.
8. A cheque written in November was recorded in the books at $1,330. However, this cheque cleared the bank in November for $1,303 (which was the correct amount). This cheque was issued as a payment on account.
9. A $15,000 deposit in transit at November 30 is included in the books, but does not show on the bank statement.
10. The bank, in error, credited the firm's account for $300 in November for another firm's deposit.
b. do any journal entries required by the information contained in a. above.
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