The bank statement for Company X Inc., as of October 30, 2020, shows a balance of $14,500.77. The general ledger shows a balance of $12,879.89.

Other data:

1) A debit memo included with the bank statement reflected a returned check from a customer in the amount of $3,500. The check was deposited on October 25^th and returned as “NSF” on October 28^th.

2) A deposit in the amount of $4,300.55 was left in the night deposit box on October 29^th, after banking hours, and therefore was not included on the bank statement.

3) A memo was included in the bank statement indicating that the canceled checks were not available, but they would be returned by the end of next month. However, the following information is available.

• Checks charged on the October bank statement: $43,900.49
• Checks recorded in the general ledger for October: $66,545.49
• Checks outstanding per the August bank reconciliation: $7,562.97

- All of the outstanding checks in August cleared in October.

4) A dividend check in the amount of $ 550 from IBM stock owned by Company X, was direct deposited to the account on October 28^th. Company X had not recorded the deposit.

5) The bank statement indicated a charge on October 29^th in the amount of $547.62 for interest on the company’s credit line.

6) A deposit made from customers on October 15th in the amount of $4,400.00, was erroneously entered into the general ledger as $4,200.00.

7) A debit memo was included in the bank statement for services charges in the amount of $89.00.

Required: 

1) Prepare, in good form, the bank reconciliation as of October 30^th.

2) Prepare, in good form, the required adjusting journal entries.

Answer rating: 100% (QA)

Company X Inc Bank reconciliation statement Amount Balance as per ba... View the full answer