The general ledger of Michelle Co. Ltd. showed a cash balance of $ 25,160 on 31 December 20X2, while the bank showed a balance of $ 59,400. he following facts were available:
a. The bank collected $ 11,560 as a direct deposit for one of Michelle’s customer as a pay-ment on account. A $ apay-mentonaccount.A$ 15 fee was charged by the bank for administration. Michelle has yet to record either of these amounts.
b. Michelle paid a utilities bill of $ 390 through direct transfer from its bank account but has not yet recorded the payment.
c. There was an outstanding deposit of $ 16,800 at the end of December.
d. The bank had charged a cheque of $ 2,600, written by Mitchell Corp., to Michelle’s bank account. he bank has been contacted about the error, and will reverse the cheque in January.
e. A deposit of $ 1,300 from a customer on account was recorded by Michelle for $ 3,100. he bank noticed the error and deposited the correct amount of money, but the deposit is incorrectly recorded on Michelle’s books.
f. Michelle’s bank account shows a deposit of $ 22,000 in December, which is an increase in Michelle’s bank loan. he amount has not been recorded by Michelle.
g. At the end of November, outstanding cheques were $ 8,185. his month, cheques were issued for $ 199,000, and cheques of $ 184,900 cleared the bank account.

1. Prepare a bank reconciliation, in good form, at the end of December 20X2.
2. Prepare any adjusting journal entries required as a result of the reconciliation.

  • CreatedFebruary 17, 2015
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