The bank portion of the bank reconciliation for Katsaris Company at August 31, 2014, was as follows:

Question:

The bank portion of the bank reconciliation for Katsaris Company at August 31, 2014, was as follows:

The bank portion of the bank reconciliation for Katsaris Company

The adjusted cash balance per bank agreed with the cash balance per books at August 31. The September bank statement showed the following:

The bank portion of the bank reconciliation for Katsaris Company

Additional information:
1. The deposit of $3,145 on September 15 is an electronic transfer from a customer in payment of its account. The amount includes $65 of interest, which Katsaris Company had not previously accrued.
2. The NSF for $1,027 is for a $1,015 cheque from a customer, Hopper Holdings, in payment of its account, plus a $12 processing fee.
3. SC represents bank service charges for the month.
The bank made one error: it recorded cheque #4475 incorrectly. Any other errors were made by Katsaris Company. The cash records per the company's books for September showed the following:

The bank portion of the bank reconciliation for Katsaris Company

Instructions
(a) Determine the unadjusted cash balance per books as at September 30 before reconciliation.
(b) Prepare a bank reconciliation at September 30.
(c) Prepare the necessary adjusting entries at September 30. (The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.)
Taking It Further
The company will prepare entries to record items found in the above bank reconciliation (see part [c] in the instructions). Describe any other follow-up actions required regarding the other reconciling items in Katsaris Company's bank reconciliation?

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Related Book For  answer-question

Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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