The Green Box Company has just received its September bank statement from Example Bank. You gather the following information to prepare the September 30, 2015, bank reconciliation.

SEPTEMBER BANK STATEMENT:

CASH ACCOUNT TRANSACTIONS FOR SEPTEMBER:

GL ACCOUNT: 1080 Bank Account

For the period of Sept 01/15 to Sept 30/15

BANK RECONCILIATION FOR PRECEDING MONTH (DATED AUGUST 31):

Instructions

1. Prepare a bank reconciliation as at September 30, 2015. Assume that any errors in recording deposits or cheques were made by the bank. Deposits are made on Friday evenings.

2. Briefly explain how any errors were reflected in the bank reconciliation and how they should be corrected.

3. Journalize any necessary entries.

4. What should be the balance of the Cash Account as at September 30, 2015?

Transcribed Image Text:

EXAMPLE BANK Statement of Account Account Type Statement From To 7531-3437568 Business Sept 01/15 Sept 30/15 DESCRIPTION WTTHDRAWALSİ DEPOSITS BALANCE 3 BALANCE FORWARD 1 351.25 739.43 2 798.92 610.59 Service Charge 2,490.19 DATE DEBIT CREDIT BALANCE Dr. Cr.l Opening Balance September 3 7 September 7 September 14 Deposit Slip Deposit Slip 739.43 788.92 7 610.59 1,069.59 3,208.53 Deposit Slip Cash balance according to bank statement Add deposit of August 31, not recorded by bank. S5,391.43 351.25 5,742.68 Deduct outstanding cheques: No. 239 . 240 242 $131.39 66.08 130,23 327.70 35, 1.98 Adjusted balance Cash balanice according to company's records Deduct: Service charges S5,449.98 3D.00 $5.414.98 Adjusted balance