PRACTICE EXERCISE 9 From the following information, prepare a bank reconciliation statement for the Asian Book Store on February 28, 20. Follow these steps carefully: Compare the outstanding deposit and the outstanding cheques shown on the January 31 reconciliation statement (Figure 9.20a) with the deposits and cheques listed on the February bank statement (Figure 9.20b). If these items now appear on the bank statement, they are no longer outstanding. Therefore, you should put a check mark beside each of these amounts on the bank statement. Figure 9.20aBank Reconciliation for January Figure 9.20bBank Statement for February Figure 9.20cCash Receipts Journal Figure 9.20dCash Payments Journal Check the February deposits in the Cash Receipts Journal (Figure 9.20c) against the deposits listed on the bank statement. Write O/S beside any deposit in the journal that does not appear on the bank statement. These are the outstanding deposits that will be shown on this months bank reconciliation. Check the February entries in the Cash Payments Journal (Figure 9.20d) against the cheques listed on the bank statement. Write O/S beside any payment in the journal that does not have a corresponding amount on the bank statement. These are the outstanding cheques to be shown on this months bank reconciliation. The balance in the Bank account on the books at the end of January was $1,234. Use this amount and the totals of the Cash Receipts and Cash Payments Journals to calculate the balance in the Bank account at the end of February. The following items were noted on the bank statement at the end of February but have not yet been recorded on the books: (a)monthly bank charges, $23. (b)NSF cheque from H. Potter, $250. Finally, record the General Journal entries for the items not yet recorded on the books.

Asian Book Store Bank Reconciliation January 31, 20 Bank Statement Balance Outstanding Deposit $15 8400 325 000 48 3 400 less: Outstanding Cheques #231 #232 Adjusted Balance $1 6 6 000 19 4 000 3 60 000 $1234 00 Bank Statement (February) Date Cheques Deposits 3,250 1,940 1,660 1,580 926 4,560 3,500 89 91 123 or 3,300 Feb. 1 2 2 2 3 3 7 7 7 8 11 12 12 13 17 22 22 22 23 26 27 28 28 28 Balance 1,584 4,834 2,894 1,234 2,814 1,888 6,448 2,948 2,859 2,768 2,645 5,945 5,861 5,706 13,206 16,206 15,845 13,095 10,595 14,845 10,935 10,268 10,245 9,995 84 155 7,500 3,000 361 2,750 MTG 2,500 4,250 3,910 667 S/C 23 NSF 250 Cash Receipts Journal Date Feb. 3 7 12 17 22 26 28 Deposits 1,580 4,560 3,300 7,500 3,000 4,250 3,550 27,740 Cash Payments Journal Date Chq# Feb. 2 5 5 6 7 11 11 17 20 23 23 23 27 233 234 235 236 237 238 239 240 241 242 243 Mortgage 244 245 246 Amount 926 89 3,500 91 123 84 155 2,750 361 3,910 667 2,500 1,740 1,000 2,050 19,946 27 28