Question

Look at the following accounts and place them where they belong in the financial statements. Peay Company needs help preparing their bank reconciliation. The cash t-account on October 31, 2018 shows a balance of 3,815. The bank statement on October 31, 2018 shows a balance of 18,450. Further analysis reveals the following: a. Checks outstanding total 9,845. b. A deposit of 4,165 on October 31st was made too late in the day to appear on the bank statement. c. The bank collected a total of 9,310 for Peay as Accounts Receivable (customers paying on account). d. The bank paid phone bills for Peay in the amount of 275. e. The bank statement showed a NSF check for 80. Customer plans to pay in cash later this week.

LABEL every number used. Prepare the bank reconciliation need on Oct 31.

Bank side:

company side:

Write out journal entries needed on October 31

A.

B.

C.

Answer 1

Bank Reconciliation
At October 31
Bank Side
Bank balance		18,450
Add: Deposit in transit		4,165
		22,615
Less: Outstanding checks		-9,845
Adjusted bank balance		$12,770
Company Side
Cash balance		3,815
Add: EFT		9310
		13,125
Less:
Utility expense	-275
NSF check	-80
		-355
Adjusted book balance		$12,770

Transaction	General Journal	Debit	Credit
A	Cash	$9,310
	Accounts receivable		$9,310
	( To record EFT collection )
B	Utility expense	$275
	Cash		$275
	( To record phone bill payment)
C	Accounts receivable	$80
	Cash		$80
	( To record NSF check)