Miller Corporation’s December 31, 2013, bank statement showed a $2,049.25 balance. On this date, Miller’s Cash account reflected a $325.60 overdraft. In reconciling these amounts, the following information is discovered:

1. Cash on hand for undeposited sales receipts, December 31, $130.25.

2. Customer NSF check returned with bank statement, $420.40.

3. Cash sales of $640.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.

4. Note receivable of $2,500 and interest of $25 collected by the bank and not recorded on the books.

5. Deposit in transit December 31, $350.00.

6. A customer check for $290.40 in payment of its account was recorded on the books at $940.20.

7. Outstanding checks, $2,040.55. Includes a duplicate check of $70.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount.

Required:

1. Prepare a December 31 bank reconciliation for Miller.

2. Prepare any journal entries necessary by Miller to record the information from Requirement 1.

Answer rating: 100% (QA)

1 Below is the Bank Reconciliation Statement of ML on December 31 2013 Bank statement showed a 20492... View the full answer