PART II — Bank Reconciliation and Related Entries
Instructions:
Your client requested that you assist them in preparing their October bank reconciliation as they are uncomfortable based on the feedback you have provided on their cash controls - please prepare the bank reconciliation and correlated journal entries based on the following information:
Bank Balance, October 31, 2021: $15,368.50
Book Balance, October 31, 2021: $15,548.00
Notes:
1) The bank statement included an NSF charge of $105.00 for a cheque received from a customer.
2) The bank statement included an incorrect charge of $15.00 to the companies account for preparing their bank reconciliation, a service which was not provided by the bank.
3) Outstanding cheques as of October 31, 2021, were $118.00.
4) $3,250 was received into the company’s bank account on October 31, 2021 for a line of credit extended by the bank.
5) Cash sales of $12.50 were incorrectly recorded as $1,250 by the company’s bookkeeper.
6) The bank statement included a charge (debit memo) of $205.00 for the monthly bank services.
7) Deposits in transit as of October 31, 2021, were $1,985.00.
Bank Reconciliation Template:
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Journal Entry Template: note – please ignore account numbers as none have been provided.
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Account Name |
Debit or Credit |
Amount |
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