| Moran's Morning Brew deposits all cash receipts on a daily basis. It makes all cash payments by check. | |||||||||
| At the close of business on November 30, 2012, its cash account per the general ledger shows a debit | |||||||||
| balance of $13,789. Moran's Morning Brew's November 30 bank statement shows $10,555 on deposit. | |||||||||
| Required: | |||||||||
| (a) Prepare a bank reconciliation using the following information: | |||||||||
| 1) The Nov. 30 cash deposit of $8,686 were deposited late and not recorded on the bank statement. | |||||||||
| 2) Outstanding checks total $2,208. | |||||||||
| 3) Check No. 919 listed with the canceled checks, was correctly drawn for $456 to pay a utility bill. | |||||||||
| The company mistakenly recorded the check as $465. | |||||||||
| 4) The bank statement includes a $112 debit memo for service charges. | |||||||||
| Moran's Morning Brew | |||||||||
| Bank Reconcilition | |||||||||
| Oct. 31, 2018 | |||||||||
| Balance per Bank | 10,555 | Balance per Books | |||||||
| Add: | Add: | ||||||||
| Deduct: | Deduct: | ||||||||
| Bal. per Recon. | Balance per Recon. | ||||||||
| (b) Prepare the required journal entries to update Moran's Morning Brew's records. | |||||||||
| GENERAL JOURNAL | |||||||||
| Date | Account Titles and Explanation | Debit | Credit | ||||||
| Moran's Morning Brew | ||||
| Bank Reconcilition | ||||
| Oct. 31, 2018 | ||||
| Balance per Bank | 10,555 | Balance per Books | ||
| Add: | ||||
| Cash Deposited but not presented in bank | 8686 | |||
| Deduct: | ||||
| Outstanding checks | 2208 | |||
| Amount Mistaknly recorded | 9 | |||
| Service amount not included in books | 112 | |||
| Cheque for cash apyment issued but not yet cleared | 3123 | |||
| Bal. per Recon. | 13,789 | 13789 |
Journal entry to rectify the mistake
Bank A/C Dr. 9
To Utility Expense A/C 9
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