Comprehensive Problem 3 Part 2:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

Note: You must complete part 1 before completing part 2.

Based on the following data, prepare a bank reconciliation for December of the current year:

a. Balance according to the bank statement at December 31, $283,000. b. Balance according to the ledger at December 31, $245,410. c. Checks outstanding at December 31, $68,540. d. Deposit in transit, not recorded by bank, $29,500. e. Bank debit memo for service charges, $750. f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.

Kornett Company Bank Reconciliation December 31, 20Y5
Balance according to bank statement		D	C
Adjustments:			283000
Deposit in transit		29500
Outstanding checksOutstanding checks		68540
Total adjustments			39040
Adjusted balance		243960
Balance according to company's records			245410
Adjustments:
Bank service charges		750
Error in recording check		700
Total adjustments			1450
Adjusted balance			243960

Calculator

Comprehensive Problem 3 Part 3:

Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem.

Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company. If an amount box does not require an entry, leave it blank. Use the Miscellaneous Administrative Expense account to record bank service charges.

Date	Description	Debit	Credit
Dec. 31