Question
K Company maintains a checking account at National Bank. Ks general ledger account had a balance of $12,673 at the end of May. The May
K Company maintains a checking account at National Bank. Ks general ledger account had a balance of $12,673 at the end of May. The May bank balance was $12,373.
The May bank statement included the following information:
The bank returned one of Ks customers checks marked NSF $ 50
Monthly loan payment deducted directly by the
bank from Ks account (includes $107 of interest) 1,107
Bank credit card fees 10
Draft for monthly electricity 335
Additional reconciling information:
A deposit that K mailed May 30 does not appear on the bank statement 2,115
Checks written by the company but not yet processed by the bank totaled 2,807
K recorded a $1,400 deposit from a credit customer as a $800
debit to cash and credit to accounts receivable.
A check correctly recorded by K as a $1,210 disbursement was incorrectly
processed by the bank as a $1,300 disbursement.
- Prepare a bank reconciliation for K Company
- Prepare the necessary journal entries that result from the bank reconciliation.
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