In connection with an audit you are given the following work sheet:

Checks Drawn but Not Paid by Bank
No. Amount
573 ......... $ 267.27
724 ......... 39.92
903 ......... 454.67
907 ......... 291.80
911 ......... 648.29
913 ......... 737.52
914 ......... 529.10
916 ......... 36.00
917 ......... 117.26
$ 3,295.15
Required
a. Prepare a corrected reconciliation.
b. Prepare journal entries for items that should be adjusted prior to closing thebooks.*

Transcribed Image Text:

Bank Reconciliation, December 31, 2011 Balance per ledger December 31, 2011 Add Cash receipts received on the last day of December and $27,253.85 charged to "cash in bank on books but not deposited Debit memo for customer's check returned unpaid (check 3,715.27 is on hand but no entry has been made on the books) Debit memo for bank service charge for December 450.00 35.00 $31,454.12 Deduct: Checks drawn but not paid by bank (see detailed list below) Credit memo for proceeds of a note receivable that had $3,295.15 been left at the bank for collection but which has not been recorded as collected Checks for an account payable entered on books as 1,200.00 39700 (4,89215) 26,561.97 416.44 $26,978.41 $297.50 but drawn and paid by bank as $694.50 Computed balance Unlocated difference Balance per bank (checked to confirmation)