Question

Question 1: Prepare the bank reconciliation for Uptown Company and complete the adjusting journal entries after the reconciliation done for November 30, 2018 using the following information:

• The balance on the November 30, 2018 bank statement is $43,504.55

• The balance per the November 30, 2018 books is $ 49,634.55.

• Outstanding cheques as of November 30, 2018, amount to $2,250.

• Deposits in transit as of November 30, 2018, amount to $1,500.

• The accountant mistakenly recorded a $260 cash payment as $215.

• The bank by mistake recorded a $6,800 deposit made by Uptown Company on November 13 into the account of a different company.

• The bank statement indicated bank service charges of $35 for November.

Answer 1

Bank Reconciliation

November 30, 2018

Bank Balance, November 30, 2018	43,504.55	Book Balance, November 30, 2018	49,634.55
Add:		Add:
Deposit in transit	1,500
Correction of bank error	6,800
Less:		Less:
Outstanding checks	- 2,250	Bank service charges	- 35
		Correction of book error	- 45
Adjusted bank balance	49,554.55	Adjusted book balance	49,554.55

Journal

November 30, 2018	Accounts payable	45
	Cash		45
	(To correct book error)
November 30, 2018	Bank service charges	35
	Cash		35
	(To record Bank service charges)