Question
The records of Denna Corporation show the following bank statement information for December: a. Bank balance, December 31, 2009, $87,450 b. Service charges for December,
The records of Denna Corporation show the following bank statement information for December:
a. Bank balance, December 31, 2009, $87,450
b. Service charges for December, $50
c. Rent collected by bank, $1,000
d. Note receivable collected by bank (including $300 interest), $2,300
e. December check returned marked NSF (check was a payment of an account receivable), $200
f. Bank erroneously reduced Dennas account for a check written by Dunna Company, $1,000
g. Cash account balance, December 31, 2009, $81,200
h. Outstanding checks, $9,200 i. Deposits in transit, $5,000
1. Prepare a bank reconciliation for December.
2. Prepare the entry to correct the cash account as of December 31, 2009.
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