Question
The following information pertains to Marklee Company as of January 31, 20xx: Balance per bank statement as of January 31, 20xx, was $59,410. Balance per
The following information pertains to Marklee Company as of January 31, 20xx:
Balance per bank statement as of January 31, 20xx, was $59,410.
Balance per Marklee Company's Cash account at 20xx January 31, was
$60,929.
A late deposit on January 31 did not appear on the bank statement,
$4,300.
Outstanding checks as of January 31 totaled $7,614.
During January, the bank credited Marklee Company with the proceeds,
$6,795, of a note which it had collected for the company. Interest revenue
was $45 of the total.
Bank service and collection charges for January amounted to $18.
Comparison of the canceled checks with the check register revealed that
one check in the amount as $ 1,458 had been recorded in the books as
$1,539. The check had been issued in payment of an account payable.
A review of the deposit slips with the bank statement showed that a
deposit for $2,250 of a company with a similar account number had been
credited to the Marklee Company account in error.
A $270 check received from a customer, R. Petty, was returned with the
bank statement marked NSF.
During January, the bank paid a $13,500 note of Marklee Company plus
interest of $135 and charged it to the company's account per instructions
received. Marklee Company had not recorded the payment of this note.
An examination of the cash receipts and the deposit tickets revealed that
the bookkeeper erroneously recorded a check from a customer, C. Parker,
of $1,458 as $1,944.
The bank statement showed a credit to the company's account for interest
earned on the account balance in January of $450.
a. Prepare a bank reconciliation as of 20xx January 31.
b. Prepare the journal entry or entries necessary to adjust the accounts as of
20xx January 31
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