The following information is provided for preparing bank
reconciliation for Rush Company as of December 31.
1. The cash ledger account of Rush Company reveals an ending
balance of $8,374.33 as of December 31.
2. Comparison of the company’s records and the bank statement
for December indicates that, the following checks are issued and
appear in the company’ records but are not listed among the paid
checks by the bank:
Ck.no.423 $125
Ck.no.424 $387
3. Comparison of the company’s records and the bank statement
for December indicates that, all the deposits made by Rush Company
and recorded in the company’ accounts during December are all
listed in the bank statement for December. These deposits are as
follows:
Deposit 1 $6,700.38
Deposit 2
Deposit 3 $4,300 $1,400
4. Comparison of the company’s records and the bank statement
demonstrates that, the check (Ck.no.422) for $643 is issued by Rush
to pay electricity bill for the month of December. The check is
accurately recorded in the company’s records and it is accurately
paid by the bank. The check appears among the paid checks in the
bank statement.
5. The bank statement, demonstrates that the ending balance of
cash is $8,000 as of December 31.
6. Comparison of the company’s records and the December bank
statement indicates that a check which is not issued by Rush
Company is erroneously paid by bank and deducted from Rush’s bank
balance, $656.33.
7. The debit memorandum presented in the bank statement
reveals payment of telephone bill by the bank on behalf of Rush
company, $230.
Requirements (40 points):
a. Prepare bank reconciliation for Rush Company as of December
31.
b. Prepare the adjusting entry/entries in general journal of
Rush Company as of December 31.