BANK RECONCILIATION: a) Bank balance on the bank statement is $2,050. b) Book balance shown in...
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BANK RECONCILIATION: a) Bank balance on the bank statement is $2,050. b) Book balance shown in the accounting records is $1,404.58. c) A $145 deposit placed in the bank's night depository on October 31 is not recorded on the bank statement. d) A comparison of canceled checks with the company's books showed two checks outstanding No. 124 for $150 No. 126 for $200 3 e) Enclosed with the bank statement is a credit memorandum showing the bank collected a note receivable 4 for the company on October 23. The note's proceeds of $500 (minus a $15 collection fee) are credited 5 to the company's account. The company has not yet recorded this credit memorandum. 6 7 f) The bank statement shows a credit of $8.42 for interest earned on the average cash balance. There 8 was no prior notification of this item, and it is not yet recorded. 79 30 Other debits on the bank statement that are not recorded include (g) a $23 charge for checks printed 31 by the bank and (h) an NSF check for $20 plus a related $10 processing fee. The NSF check is 82 dated October 16 and included in that day's deposit. 83 Prepare the bank reconciliation. 5 Bank Statement Balance 3 Add: 10 1 2 3 4 95 96 97 Deduct: 38 199 00 101 102 03 04 105 Adjusted Bank Balance 106 107 108 109 110 111 Balance Per Books Add: Deduct: Adjusted Book Balance BANK RECONCILIATION: a) Bank balance on the bank statement is $2,050. b) Book balance shown in the accounting records is $1,404.58. c) A $145 deposit placed in the bank's night depository on October 31 is not recorded on the bank statement. d) A comparison of canceled checks with the company's books showed two checks outstanding No. 124 for $150 No. 126 for $200 3 e) Enclosed with the bank statement is a credit memorandum showing the bank collected a note receivable 4 for the company on October 23. The note's proceeds of $500 (minus a $15 collection fee) are credited 5 to the company's account. The company has not yet recorded this credit memorandum. 6 7 f) The bank statement shows a credit of $8.42 for interest earned on the average cash balance. There 8 was no prior notification of this item, and it is not yet recorded. 79 30 Other debits on the bank statement that are not recorded include (g) a $23 charge for checks printed 31 by the bank and (h) an NSF check for $20 plus a related $10 processing fee. The NSF check is 82 dated October 16 and included in that day's deposit. 83 Prepare the bank reconciliation. 5 Bank Statement Balance 3 Add: 10 1 2 3 4 95 96 97 Deduct: 38 199 00 101 102 03 04 105 Adjusted Bank Balance 106 107 108 109 110 111 Balance Per Books Add: Deduct: Adjusted Book Balance
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