QUESTION #13:

Instructions:

(a) Prepare a bank reconciliation at August 31, 2017.

(b) Journalize the adjusting entries to be made by Tizani at August 31. Assume interest on the note has

not been accrued.

COMPANY INFO:

Tizani SpAs bank statement from Eastern National Bank at August 31, 2017, shows the information below.

Balance, August 1 11,284 Bank credit memoranda:

August deposits 47,521 -- Collection of note receivable plus 105 interest 4,505

Checks cleared in August 46,175 -- Interest earned 41

Balance. August 31 22,701 Bank debit memorandum:

-- Safety deposit box rent 30

A summary of the Cash account in the ledger for August shows: balance, August 1, 10,559; receipts 50,050; disbursements 47,794; and balance, August 31, 18,370. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for 2,200 and outstanding checks of 2,925. The deposit in transit was the first deposit recorded by the bank in August. ln addition. you determine there were two errors involving company checks drawn in August: (1) A check for 340 to a creditor on account that cleared the bank in August was journalized and posted for 480. (2) A salary check to an employee for 275 was recorded by the bank for 295.

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Use this template to prepare your bank reconciliation at August 31, 2017
TIZANI SPA Bank Reconciliation August 31, 2017
GENERAL JOURNAL
Aug	Account Title	Ref	Debit	Credit
31
31
31
31