Question
The following data pertain to bank transactions of Hawks Company during September: - The company's bank statement showed a balance of $50,000 on September 30.
The following data pertain to bank transactions of Hawks Company during September:
- The company's bank statement showed a balance of $50,000 on September 30.
- The balance per book is as of September 30 was $49,000.
- Deposits in transit: $8,000.
- Outstanding checks: $5,000.
- The bank collected a note for the company amounted $5,500 in which $5,000 was principal and $500 was interest. The bank deposited $5,400 to the company account after charging $100 collection fee.
- The bank service charge for the month: $200.
- Included in the bank statement was a check from a customer in the amount of $1,200 which was marked NSF by the bank.
Instructions:
A. Prepare a Bank Reconciliation for the company on September 30.
B. Prepare any necessary journal entries for Hawk for its bank reconciliation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started