Question

The following data pertain to bank transactions of Hawks Company during September: - The company's bank...

The following data pertain to bank transactions of Hawks Company during September:

- The company's bank statement showed a balance of $50,000 on September 30.

- The balance per book is as of September 30 was $49,000.

- Deposits in transit: $8,000.

- Outstanding checks: $5,000.

- The bank collected a note for the company amounted $5,500 in

which $5,000 was principal and $500 was interest. The bank

deposited $5,400 to the company account after charging $100

collection fee.

- The bank service charge for the month: $200.

- Included in the bank statement was a check from a customer in the

amount of $1,200 which was marked NSF by the bank.

Instructions:

1. Prepare a Bank Reconciliation for the company on September 30.

2. Prepare any necessary journal entries for Hawk for its bank reconciliation.

Business   Accounting   
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Answer #1

Bank reconciliation

Balance as per Bank Statement

50000
Add: Deposit in transit 8000
58000
Less: Outstanding Checks -5000
Adjusted balance 53000
balance as per Book balance 49000
Add: Note collection (5500-100) 5400
54400
Less: Bank Charges -200
Less: NSF Check -1200
Adjusted balance 53000

Journal entry

No General Journal Debit Credit
1 Cash 5400
Bank Charges 100
Notes receivable 5000
Interest revenue 500
2 Bank Charges 200
Cash 200
3 Account receivable 1200
Cash 1200
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