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Based on the information for Kemper Company below, (1) prepare a bank reconciliation and (2) record...

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

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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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