Question

The following information should be used to prepare a bank reconciliation for KTZFIG Sales and Consulting as of June 30. Prepare the bank reconciliation . Also Prepare Journal Entries
	On June 30, 2019, KTZFIG Sales and Consulting Co. had a cash balance in the ledger of $241,768. The June statement from Michigan State Bank showed a balance of $244,573 on June 30, 2019. The following facts regarding banking and cash activities are available.
	The bank service charge for June was $70.
	The bank collected $11,560, that was owed to KTZFIG Sales and Consulting Co by a customer, through electronic funds transfer.
	The June 30 receipts of $17,600 were not included in the bank deposits for June. These receipts were deposited by the company in a night deposit vault on June 30.
	Company check No. 2480 issued to BMoore Co, a creditor, for $475 that cleared the bank in June was incorrectly entered in the cash payments journal on June 10 for $450.
	Checks outstanding on June 30 totaled $13,760.
	On June 30, the bank statement showed an NSF charge of $1,350 for a check received by the company from TRymph, a customer, on account.
	The bank statement shows a check for $3,470 was charged to KTZFIG account. The check was written by Nschrib Company not KTZFIG Sales and Consulting .
	Prepare the bank reconciliation as of June 30.

Answer 1

Solution:

KTZFIG Sales and Consulting Co.
Bank Reconciliation - June 30
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$244,573.00	Ending Balance as per cash books	$241,768.00
Additions:		Additions:
Deposit in transit	$17,600.00	EFT Collection	$11,560.00
Check charged incorrectly to KTZFIG	$3,470.00
Deductions:		Deductions:
Outstanding Checks	$13,760.00	Incorrect recording of check no 2480 ($475 - $450	$25.00
		NSF Check	$1,350.00
		Service Charge	$70.00
Adjusted Cash Balance	$251,883.00	Adjusted Cash Balance	$251,883.00