The following data were gathered to use in reconciling the bank account of East Meets West Company:
Balance per bank $18,340
Balance per company records 6,480
Bank service charges 50
Deposit in transit 2,500
Note collected by bank with $250 interest 8,250
Outstanding cheques 7,160
NSF cheque for Scott accounts receivable 1000
1. Prepare a bank reconciliation for East Meets West Company.
2. Journalize any necessary entries for East Meets West Company based on the bank reconciliation.
|Balance asper bank||18340||Balance asper books||6480|
|Add: Deposit in transit||2500||Add: Note collected by bank||8250|
|Less: Outstanding cheque||(7160)||Less: Bank service charge||(50)|
|Less: NSF Cheque||(1000)|
|Adjusted Cash Balance at bank||13680||Adjusted Cash Balance at book||13680|
|Bank service Charge a/c||50|
|(Service Charged by bank)|
|Note Receivable a/c||8000|
|Interest Receivable a/c||250|
|(Not collected by bank)|
|Accounts Receivable a/c||1000|
|(NSF Cheque returned)|
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