Rick Neal operates a roller skating center, Neal's Rinks. He has just received the monthly bank statement at October 31 from Sandstone National Bank, and the statement shows an ending balance of $750. Listed on the statement are an EFT rent collection of $330, a service charge of $10, two NSF checks totaling $110, and an $11 charge for printed checks. In reviewing his cash records, Neal identifies outstanding checks totaling $603 and an October 31 deposit in transit of $1,770. During October, he recorded a $310 check for the salary of a part-time employee as $31. Neal's Cash account shows an October 31 cash balance of $1,997. How much cash does Neal actually have at October 31, 2016?
Neal's Rink
Bank Reconciliation
October 31, 2016
BANK:
Balance, October 31					$ 750
Add: Deposit in transit					1,770
Less: Outstanding checks				603
Adjusted bank balance					$ 1,917
BOOKS:
Balance, October 31					$ 1,997
Add: EFT collection rent				330
Less:
Service charge				$ 10
NSF checks					110
Charge for printed checks			11
Correction of book error			279
recorded						410
Adjusted book balance					$ 1,917

Exercise 15
	Use the data from Exercise 14 to make the journal entries that Neal should record on October 31 to update his Cash account. Include an explanation for each entry.
Solution:
	Journal
	DATE	ACCOUNT TITLES AND EXPLANATION	DEBIT	CREDIT
	Aug. 31	Cash
			Rent Revenue
		EFT collection of rent.
	31	Miscellaneous Expense
			Cash
		Bank service charge and charge
		for printed checks.
	31	Accounts Receivable
			Cash
		NSF checks returned by bank.
	31	Salary Expense
			Cash
		Correction of book error.