Bank Reconciliation The Seattle Boat Company’s bank statement for the month of September indicated a balance of $16,800. The company’s cash account in the general ledger showed a balance of $13,582 on September 30. Other relevant information includes the following:
- Deposits in transit on September 30 total $12,480.
- The bank statement shows a debit memorandum for a check printing charge of $96.
- Check number 238 payable to Simon Company was recorded in the accounting records for $595 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $86 credit balance and the check to them should have been $682.
- Outstanding checks as of September 30 totaled $13,920.
- Check No. 276 was correctly written and paid by the bank for $982. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $1,176.
- The bank returned a NSF check in the amount of $1,344.
- The bank included a credit memorandum for $3,024 representing a collection of a customer’s note. The principle portion was $2,880 and the interest portion was $144. The interest had not been accrued.
Required
a. Prepare the September bank reconciliation for Seattle Boat Company.
b. Prepare any necessary adjusting entries.
a.
| SEATTLE BOAT COMPANY Bank Reconciliation September 30 | ||
|---|---|---|
| Cash Balance per Bank | $ | |
| Add: | ||
| Less: | ||
| $ | ||
| Cash Balance per Books | $ | |
| Add: Accounts Payable Error | $ | |
| Add: | ||
| Less: Check Printing Charge | ||
| Less: | ||
| $ | ||
b.
| GENERAL JOURNAL | ||||
|---|---|---|---|---|
| Date | Description | Debit | Credit | |
| Sept | 30 | $ | $ | |
| To correct check error in recording check No. 276. | ||||
| 30 | ||||
| Notes Receivable | ||||
| To record note collection by bank. | ||||
| 30 | ||||
| To record check printing charge. | ||||
| 30 | ||||
| To record NSF check. | ||||
