Question

1. RJ Enterprises has an operating account which is maintained at Ameris Bank. You learned the following:

• The cash receipts journal showed cash of $16,450 received on September 30, 2020 and the deposit was made on the same day. The deposit was not recorded in the bank until October 2, 2020
• The September 30, 2020 bank statement showed a balance of $42,500
• In analyzing the September 30^th cash receipts activities, you noticed a transposition error included in the activities was a deposit received for $4,150 which was recorded in the journal as $4,510.
• The following checks recorded in the check register had not been deposited by the respective customer:
              Check #          Date of check             Amount
              101                  8/1/2020                       $600
              201                  8/31/2020                      750
              221                              “                       1100
              250                      9/3/2020 3120
              330                    9/30/2020 225
              333                     10/1/2020   175
              337                  10/2/2020 525
• Due to multiple bad checks received from customers, RJ Enterprises was charged $55 service fees for September 2020
• The RJ Enterprises earned $15 interest for the month

Required: Prepare RJ Enterprises’ bank reconciliation for October (in good form). Note that your ultimate goal is to determine the general ledger balance at the end of the year

Answer 1