Question

The following information is for Carla Vista Company in September:

1. Cash balance per bank, September 30, $6,900.

2. Cash balance per books, September 30, $5,430.

3. Outstanding cheques, $3,150.

4. Bank service charge, $21.

5. NSF cheque from customer, $240.

6. Deposits in transit, $1,557.

7. EFT receipts from customers in payment of their accounts, $84.

8. Cheque #212 was correctly written and posted by the bank as $428. Carla Vista Company had recorded the cheque as $482 in error. The cheque was written for the purchase of supplies.

Prepare a bank reconciliation at September 30, 2021. (List items that increase balance as per bank & books first.)

Journalize the adjusting entries at September 30, 2021, on Carla Vista Company’s books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

	Bank reconciliation
	Bank balance	6900
Add	Deposit in transit	1557
		8457
Less	Outstanding checks	3150
	Adjusted bank balance	5307
	Cash balance as per general ledger		5430
Add	EFT	84
	Error in check $212 (482-428)	54	138
Less	Service charges	21
	NSF check	240	261
	Adjusted cash balance		5307
	Journal entries	Debit	Credit
1	Cash	138
	Accounts receivable		84
	Accounts payable		54
2	Accounts payable	240
	Service charges	21
	Cash		261