The cash account for Discount Co. at April 30, 2015, indicated a balance of $5,605.
The bank statement indicated a balance of $9,158 on April 30, 2015. Comparing the bank statement and the accompanying cancelled cheques and memos with the records revealed the following reconciling items:
a. Cheques outstanding totalled $5,225.
b. A deposit of $3,150, representing receipts of April 30, had been made too late to appear on the bank statement.
c. The bank had collected $4,120 on a note left for collection. The principal amount of the note was $4,000.
d. A cheque for $2,490 returned with the statement had been incorrectly recorded by Discount Co. as $2,409. The cheque was for the payment of an obligation to Goldstein Co. for the purchase of office equipment on account.
e. A cheque drawn for $170 had been erroneously charged by the bank as $1,700.
f. Bank service charges for April amounted to $30.
g. An NSF cheque, $1,001, from Tamara Gold for a sale, appeared on the bank statement.
1. Prepare a bank reconciliation.
2. Journalize the necessary entries. The accounts have not been closed.

  • CreatedSeptember 15, 2015
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