On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit
On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit memo for $149 is for an NSF check written by N. Carlton. Check no. 1924 for $336, payable to Garner Company (a creditor), was incorrectly recorded in the checkbook and journal as $200.
The balance of the Cash account as of August 31 is $1,509. Outstanding checks as of August 31 are: no. 1928, $119; no. 1929, $243. The accountant notes that the deposit of August 31 for $261 did not appear on the bank statement.
Instructions:
(a) Prepare a bank reconciliation as of August 31, assuming that the debit memos have not been recorded.
(b) Record the necessary journal entries.
Peabody National Bank | |||||||
Kravsnik Company 416 Seneca Avenue Kansas City, Missouri 64102 | Account No. 152-6 55-217 Statement Date: August 1-31 | ||||||
Summary: Balance Last Statement $1,360.00 Amount of Checks and Debits $2,698.00 Number of Checks 11 Amount of Deposits and Credits $2,651.00 Number of Deposits 7 Balance this Statement $1,313.00
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Checks/Other Debits
| Checks | Check Number | Date Posted | Amount | Check Number | Date Posted | Amount |
1917 | 8-04 | 172.00 | 1923 | 8-09 | 621.00 | ||
1918 | 8-04 | 76.00 | 1924 | 8-17 | 336.00 | ||
1919 | 8-05 | 146.00 | 1925 | 8-17 | 14.00 | ||
1920 | 8-07 | 206.00 | 1926 | 8-23 | 533.00 | ||
1921 | 8-07 | 139.00 | 1927 | 8-28 | 94.00 | ||
1922 | 8-08 | 200.00 |
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| Other Debits |
Description | Date Posted | Amount | |||
DM NSF check DM Service charge | 8-31 8-31 | 149.00 12.00 | |||||
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Deposits/Other Credits | Deposits | Date Posted | Amount | Date posted | Amount |
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8-02 | 326.00 | 8-18 | 419.00 | ||||
8-05 | 412.00 | 8-24 | 398.00 | ||||
8-09 | 437.00 | 8-28 | 291.00 | ||||
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Please examine this statement carefully. Report any possible errors in 10 days. Code Symbols CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction |
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