Question
The September 30 bank statement for Bennett Company and the September ledger account for cash are summarized here: BANK STATEMENT Checks Deposits Balance Balance, September
The September 30 bank statement for Bennett Company and the September ledger account for cash are summarized here:
BANK STATEMENT | ||||||||||||
Checks | Deposits | Balance | ||||||||||
Balance, September 1 | $ | 7,050 | ||||||||||
Deposits recorded during September | $ | 26,500 | 33,550 | |||||||||
Checks cleared during September | $ | 26,750 | 6,800 | |||||||||
NSF checksBetty Brown | 180 | 6,620 | ||||||||||
Bank service charges | 52 | 6,568 | ||||||||||
Balance, September 30 | 6,568 | |||||||||||
Cash (A) | |||||||
Sept. 1 Balance | 7,050 | Sept. Checks written | 29,700 | ||||
Sept. Deposits | 28,200 | ||||||
No outstanding checks and no deposits in transit were carried over from August; however, there are deposits in transit and checks outstanding at the end of September.
Required:
1. Reconcile the bank account.
2. Prepare the journal entries that should be made as the result of the bank reconciliation.
3. What should the balance in the Cash account be after the reconciliation entries?
4. What total amount of cash should the company report on the September 30 balance sheet?
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Reconcile the bank account. BENNETT COMPANY Bank Reconciliation, September 30 Company's Books Bank Statement Ending balance per bank statement Additions: Additions: Deposit in transit 0 0 0 Deductions: Deductions: Outstanding checks Bank service charges NSF check Betty Brown 0 Correct cash balance Correct cash balance Required 1 Required 2 Required 3 Required 4 Prepare the journal entries that should be made as the result of the bank reconciliation. (If no entry is required for a transaction/eve select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 A Bank service charge expense Cash 2. B Accounts receivable (Betty Brown) Cash Required 1 Required 3
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