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Reconciliation of Bank and Company Cash Amounts (Appendix 6.1)

The December 31 bank statement for Miller Corporation showed a $2,061.25 balance. On this date, the company's Cash account reflected a $1,272.5 overdraft. In reconciling these amounts, the following information is discovered:

1. Cash on hand for undeposited sales receipts, December 31, $131.25.
2. Customer NSF check returned with bank statement, $418.7.
3. Cash sales of $611.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.
4. Note receivable of $3,500 and interest of $35 collected by the bank and not recorded on the books.
5. Deposit in transit December 31, $300.
6. A customer check for $190.5 in payment of its account was recorded on the books at $950.1.
7. Outstanding checks, $2,019.55. Includes a duplicate check of $74.15 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount.

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1. Prepare a December 31 bank reconciliation for Miller. When required, enter amounts to the nearest cent.

MILLER CORPORATION
Bank Reconciliation
December 31, 2013
Balance from bank statement	$ Correct 5 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Deduct: Missing deposit Deduct: Error in recording Deduct: NSF check returned Correct 6 of Item 1	$ Correct 7 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Deduct: Missing deposit Deduct: Error in recording Deduct: NSF check returned Correct 8 of Item 1	Correct 9 of Item 1	Correct 10 of Item 1
$ Correct 11 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Deduct: Missing deposit Deduct: Error in recording Deduct: NSF check returned Correct 12 of Item 1	Correct 13 of Item 1
Adjusted cash balance	$ Correct 15 of Item 1
Balance from company records	$ Correct 17 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Deduct: Missing deposit Deduct: Error in recording Deduct: NSF check returned Correct 18 of Item 1	$ Correct 19 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Add: Interest on note Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Deduct: Missing deposit Deduct: Error in recording Deduct: NSF check returned Correct 20 of Item 1	Correct 21 of Item 1	Correct 22 of Item 1
$ Correct 23 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Deduct: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Correct 24 of Item 1	$ Correct 25 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: Note collected by bank Deduct: Error in recording Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Correct 26 of Item 1	Correct 27 of Item 1
Deduct: Deposit in transit Deduct: Cash on hand (undeposited sales receipts) Add: Outstanding checks Deduct: NSF check returned Deduct: Note collected by bank Deduct: Interest on note Add: Missing deposit Add: Error in recording Add: NSF check returned Add: Deposit in transit Add: Cash on hand (undeposited sales receipts) Deduct: Outstanding checks Add: Note collected by bank Add: Interest on note Correct 28 of Item 1	Correct 29 of Item 1	Correct 30 of Item 1
Adjusted cash balance	$ Correct 32 of Item 1

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2. Prepare any journal entries necessary by Miller to record the information from Requirement 1.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". If required, round your answers to two decimal places.

Dec. 31	Notes Receivable Interest Revenue Outstanding checks Accounts Receivable (error) Cash on hand (undeposited sales receipts) Correct 2 of Item 2	Correct 3 of Item 2	Correct 4 of Item 2
Notes Receivable Outstanding checks Deposit in transit Accounts Receivable (NSF check) Cash on hand (undeposited sales receipts) Correct 5 of Item 2	Correct 6 of Item 2	Correct 7 of Item 2
Interest Revenue Outstanding checks Deposit in transit Loss from Cash Shortage (missing deposit) Cash on hand (undeposited sales receipts) Correct 8 of Item 2	Correct 9 of Item 2	Correct 10 of Item 2
Accounts Receivable (error) Deposit in transit Accounts Receivable (NSF check) Loss from Cash Shortage (missing deposit) Cash Cash on hand (undeposited sales receipts) Correct 11 of Item 2	Correct 12 of Item 2	Correct 13 of Item 2
Dec. 31	Accounts Receivable (error) Accounts Receivable (NSF check) Loss from Cash Shortage (missing deposit) Cash Cash on hand (undeposited sales receipts) Correct 15 of Item 2	Correct 16 of Item 2	Correct 17 of Item 2
Notes Receivable Deposit in transit Accounts Receivable (NSF check) Loss from Cash Shortage (missing deposit) Cash on hand (undeposited sales receipts) Correct 18 of Item 2	Correct 19 of Item 2	Correct 20 of Item 2
Interest Revenue Outstanding checks Accounts Receivable (error) Deposit in transit Accounts Receivable (NSF check) Correct 21 of Item 2	Correct 22 of Item 2	Correct 23 of Item 2