The bank statement and relevant portions of Costco's cash records for the month ended September 30, 2020, are given below. In the bank statement, NSF indicates not sufficient funds and SC denotes a service charge.

Do as follows

1. Prepare the bank reconciliation at September 30, 2020 by using the template provided below.

2. Complete any necessary journal entries resulting from the bank reconciliation. Date the journal entries September 30, 2020. Narratives for entries are not required.

Notes:

The NSF cheque was regarding a customer account Cally Leeman.

Cheque #12 was correctly drawn by the bank in payment of the utility bill. The amount was incorrectly recorded by the bookkeeper.

Part 1

COSTCO

Bank Reconciliation
September 30, 2020
Bank Statement Balance		Book Balance
Add:		Add:
Deduct:		Deduct:
Adjusted bank balance		Adjusted book balance

Part 2

	General Journal
Date	Account Titles and Explanation	Debit	Credit

Cash Journal Records Bank Statement Cheques #12 - $1,896 Date Deposits Aug 31 Sep 8 $1,280 Sep 10 Sep 11 $1,675 Sep 15 Sep 20 Sep 24 $1,445 Sep 30 $640 Balance $10,550 $11,830 $9,934 $11,609 $10,645 $10,263 $11,708 $12,348 Date Deposits/Credits Cheques/Debits Balance Aug 31 $10,550 Sep 2 NSF - $465 $10,085 Sep 8 $1,280 $11,365 Sep 11 $1,675 $13,040 Sep 12 #12 - $1,796 $11,244 Sep 22 #14 - $382 $10,862 Sep 24 $1,445 $12,307 Sep 30 SC - $55 $12,252 #13 - $964 #14 - $382