Question

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,060 and #5893 for $1,448.00. The following information was available for the September 30, 2017, reconciliation: From the September 30, 2017, bank statement BALANCE OF PREVIOUS STATEMENT ON AUG. 31/17 10,404.00 6 DEPOSITS AND OTHER CREDITS TOTALLING 18,506.00 9 CHEQUES AND OTHER DEBITS TOTALLING 24,019.00 CURRENT BALANCE AS OF SEPT. 30/17 4,891.00 Chequing Account Transactions Date Amount Transaction Description Date Amount Transaction Description Sept. 05 5,351.00 + Deposit Sept. 25 3,031.00 + Deposit 12 2,236.00 + Deposit 30 38.00 + Interest 17 300.45 − NSF cheque 30 3,486.00 + Credit memo 21 4,746.00 + Deposit Date Cheque No. Amount Date Cheque No. Amount Sept. 03 5904 9,340.55 Sept. 22 5888 6,060.00 07 5901 1,445.00 24 5909 1,814.00 08 5905 287.00 28 5907 2,818.00 10 5903 1,119.00 29 5902 835.00 From Pelzer Company’s accounting records: Cash Acct. No. 101 Date Explanation PR Debit Credit Balance 2017 Aug. 31 Balance 2,514.00 Sept. 30 CR12 16,941.00 19,455.00 30 CD23 13,591.55 5,863.45 Deposits Made Sept. 5 $5,351.00 12 2,236.00 21 4,746.00 25 3,031.00 30 1,577.00 Total Sept. Cash Receipts $16,941.00 Cheques Written No. 5901 $ 1,445.00 5902 835.00 5903 1,119.00 5904 3,940.55 5905 287.00 5906 607.00 5907 2,818.00 5908 726.00 5909 1,814.00 Total Sept. Cash Disbursements $13,591.55 • Cheque #5904 was correctly written for $9,340.55 to pay for computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $3,940.55. The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company. • The credit memo resulted from an electronic fund transfer of $3,536 for a customer payment. The bank had deducted a $50.00 bank service charge. The collection has not been recorded. Required: 1. Prepare a September 30 bank reconciliation for the company. (Round your answers to 2 decimal places.) 2. Prepare the General Journal entries needed to adjust the book balance of cash to the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to 2 decimal places.)

Answer 1