Required: Prepare a bank reconciliation to the correct balance in cash.
Prepare any necessary journal entries for Jack Company.
Use the following information to prepare a bank reconciliation for Jack Company at April 30, 2016:
Cash account balance, April 30, $19,572.80.
Bank statement balance, April 30, $21,516.40.
Service charge on bank statement not recorded in books, $140.00.
Deposits in transit, $2,877.20.
Outstanding checks, April 30, $1,893.60.
The bank statement included a charge of $932.80 for A. Parish’s NSF check. The check, returned with the bank statement, had been received by Jack in payment on account.
The bank collected a $4,000.00 note in April for Jack. This amount was included in the bank statement, but Jack had not yet recorded the collection. The bank’s $140.00 service charge for April [see (3) above] included collection charge for the note.
|Bank Reconciliation Statement:|
|Balance as per Bank Statement||21516.4||Balance as per Books||19572.8|
|Deposits in transit||2877.2||Collection of Notes receivable||4000|
|Outstanding checks||1893.6||Service charges||140|
|Adjusted balance as per bank statement||22500||Adjusted balance as per Books||22500|
|Acounts title and explanations||Debit $||Credit $|
|Cash account Dr.||4000|
|Misc. expense Account Dr.||140|
|Accounts receivable Account Dr.||932.8|
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