Question

Dodge Company developed the following information in recording its bank statement for the month of June.

            Balance per books June 30                                               $9,570

            Balance per bank statement June 30                              $11,100

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(1)    Checks written in June but still outstanding $4,290.

(2)    Checks written in May but still outstanding $830.

(3)    Deposits of June 29 and 30 not yet recorded by bank $5,020.

(4)    NSF check of customer returned by bank $630.

(5)    Check No. 210 to Belderon Enterprises for $345 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $435.

(6)    Bank service charge for June was $30.

(7)    The bank statement included a debit memorandum regarding an EFT to Pasco Utilities for $540.

(8)   The bank collected a note receivable on behalf of the company for $2,200 plus $340 interest revenue. Dodge had not accrued interest revenue.

Instructions

Prepare a bank reconciliation at June 30.

Answer 1

Bank reconciliation at June 30

Bank		Books
Balance, June 30	11,100	Balance, June 30	9,570
Add :		Add :
Deposit in transit	5,020	Correction of book error	90
		Bank collection of receivables	2,540
Less :		Less :
Outstanding checks	-5,120	NSF checks	-630
		Bank service charges	-30
		EFT payments	-540
Adjusted bank Balance	$11,000	Adjusted Book Balance	$11,000

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