Question

Prepare a bank reconciliation for Party USA based on the following information and then prepare journal entries to adjust the general ledger cash balance.

Party USA

          Bank Reconciliation Dec. 31, 2019

Bank Side Book side

Bank Balance Dec 31     General Ledger Balance Dec. 31

Add: Add:

Less: Less:

Adjusted Bank Balance Adjusted Book Balance

Bank Balance 10,450

General ledger cash balance 10,563

Total Deposits in December 64,300

total Checks written in December 12,767

Outstanding Checks as of Dec 31st 2,813

Deposit made on Dec 31 cleared the bank on Jan. 3 1,550

Bank service charges for December 32

Deposit on bank statement no recorded by the companies clerk 1,387

Check returned NSF 75

EFT payment made to an accounts payable vendor 2,656

Once the bank statement balances prepare journal entries.

Answer 1

Bank Reconciliation

Balance per Bank		10,450
Add: Deposits in transit		1,550
		12,000
Less: Outstanding checks		2,813
Adjusted Balance		9,187
Balance per Cash		10,563
Add: Deposits not recorded		1,387
		11,950
Less:
Bank service charges	32
NSF check	75
EFT payment made	2,656	2,763
Adjusted Balance		9,187

Journal

Date	General Journal	Debit	Credit
Dec 31	Cash	1,387
	Accounts receivables		1,387
Dec 31	Bank service charges	32
	Cash		32
Dec 31	Accounts receivables	75
	Cash		75
Dec 31	Accounts payable	2,656
	Cash		2,656