Question

On August 31, Baginski and Company receives its bank statement ( shown below). The company deposits its receipts in the bank and makes all payments by check. The debit memo for $ 95 is for an NSF check written by L. Pitts. Check no. 925 for $ 47, payable to Jardin Company (a creditor), was recorded in the checkbook and journal as $ 74.
The ledger balance of cash as of August 31 is $ 1,563. Outstanding checks as of August 31 are no. 928, $ 150 and no. 929, $ 292. The accountant notes that the deposit of August 31 for $ 599 did not appear on the bank statement.


Required
1. Prepare a bank reconciliation as of August 31 assuming that the debit memos have not been recorded.
2. Record the necessary journal entries.
3. Complete the bank form to determine the adjusted balance ofcash.


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  • CreatedOctober 21, 2014
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