Question

Based on the information for Kemper Company below, (1) prepare a bank reconciliation and (2) record the necessary adjusting journal entries in good form as of January 31, 2020: a) Balance per bank statement at January 31, 2020 - $7,349.46 b) Balance per books - $5,432.76 c) Outstanding check - $2,131.85 d) Deposit in transit not recorded by bank - $1,243.15 e) Note collected by bank - $1,015 including $15 in interest f) A check for $46 for supplies was erroneously entered as $64 g) Bank service charges not entered - $5

Answer 1

Kemper Company
Bank Reconciliation
January-31
Bank statement balance	7,349.46	Book balance	5,432.76
Add:		Add:
Deposit in transit	1,243.15	Note and interest collected	1,015.00
		Correction of book error	18.00
	8,592.61		6,465.76
Less:		Less:
Outstanding check	-2,131.85	Bank service charges	-5.00
Adjusted bank balance	6,460.76	Adjusted book balance	6,460.76

Date	General Journal	Debit	Credit
January 31	Cash	$1,015
	Note receivable		$1,000
	Interest revenue		$15
	( To record note and interest revenue)
January 31	Cash	$18
	Supplies		$18
	( To record correction of book error)
January 31	Miscellaneous expense	$5
	Cash		$5
	( To record bank service charges)

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