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Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,230

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,230 and #5893 for $1,488.00. The following information was available for the September 30, 2020, reconciliation: From the September 30, 2020, bank statement:

Balance of previous statement on Aug. 31/20 10,691.00
6 deposits and other credits totalling 22,509.00
9 cheques and other debits totalling 26,394.00
Current balance as of Sept. 30/20 6,806.00

Chequing Account Transactions
Date Amount Transaction Description Date Amount Transaction Description
Sept. 05 5,652.00 + Deposit Sept. 25 4,236.00 + Deposit
12 2,565.00 + Deposit 30 46.00 + Interest
17 1,079.45 NSF cheque 30 3,502.00 + Credit memo
21 6,445.00 + Deposit
Date Cheque No. Amount Date Cheque No. Amount
Sept. 03 5904 9,340.55 Sept. 22 5888 6,230.00
07 5901 1,451.00 24 5909 2,189.00
08 5905 346.00 28 5907 3,400.00
10 5903 1,350.00 29 5902 1,008.00

From Pelzer Companys accounting records:

Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
2020
Aug. 31 Balance 3,036.00
Sept. 30 CR12 20,458.00 23,494.00
30 CD23 15,292.55 8,201.45

Deposits Made
Sept. 5 $ 5,652.00
12 2,565.00
21 6,445.00
25 4,236.00
30 1,560.00
Total Sept. Cash Receipts $ 20,458.00

Cheques Written
No. 5901 $ 1,451.00
5902 1,008.00
5903 1,350.00
5904 3,940.55
5905 346.00
5906 732.00
5907 3,400.00
5908 876.00
5909 2,189.00
Total Sept. Cash Disbursements $ 15,292.55

  • Cheque #5904 was correctly written for $9,340.55 to pay for computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $3,940.55. The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company.
  • The credit memo resulted from an electronic fund transfer of $3,552 for a customer payment. The bank had deducted a $50.00 bank service charge. The collection has not been recorded.

Required: 1. Prepare a September 30 bank reconciliation for the company. (Round your answers to 2 decimal places.)

2. Prepare the General Journal entries needed to adjust the book balance of cash to the reconciled balance. (Round your answers to 2 decimal places.)

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