Franks Ski Shop deposits all receipts in the bank and makes all payments by check. On May
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Question:
a. A bank debit memo issued for an NSF check from a customer of $19.75.
b. A bank credit memo issued for the interest of $8.50 earned during the month.
c. During the evening of May 30, a deposit of $1,173.50 was made, which is not shown on the bank statement.
d. A bank debit memo was issued for $16.25 for bank service charges.
e. Checks for the amounts of $87.50, $11.00, and $8.70 were written during May but have not yet been received by the bank.
f. The reconciliation from the previous month, April, showed outstanding checks of $260.80. One of these checks in the amount of $7.38 has not yet been received by the bank.
g. After comparing the canceled checks to the bank statement, it was discovered that a check written for the amount of $18.90 was deducted as $19.80 by the bank.
h. It was discovered that a check written to a creditor in the amount of $145.60 was recorded in the books as $14.56.
Required:
1.Prepare a bank reconciliation as of May 31.
2.Prepare the necessary general journal entries from the bank reconciliation.
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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