The bank statement for allen co.indicates a balance of $8,000 on june 30. After the journals forJune had been posted, the crash account had a balance of $3,675.perpare a bank reconciliation on the basis of the followingreconciling items:
A. Cash sales of $342 had been erroneously recorded in the crashreceipts journal as $324
B. Deposits in transit not recoreded by bank, $500.
C. Bank debit memorandom for service charges ,$25.
D. Bank credit memorandom for note collected by bank, $2,850including $50 intrest
E. Bank debit memorandom for $218 NSF (not sufficient funds)check from bell, a customer.
F. Checks outstanding, $2,200.
The bank statement for allen co.indicates a balance of $8,000 on june 30. After the journals forJune had been posted, the crash account had a balance of $3,675.perpare a bank reconciliation on the basis of the followingreconciling items:
A. Cash sales of $342 had been erroneously recorded in the crashreceipts journal as $324
B. Deposits in transit not recoreded by bank, $500.
C. Bank debit memorandom for service charges ,$25.
D. Bank credit memorandom for note collected by bank, $2,850including $50 intrest
E. Bank debit memorandom for $218 NSF (not sufficient funds)check from bell, a customer.
F. Checks outstanding, $2,200.
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Related questions
El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2018, reconciliation of the bank balance is as follows:
| Balance per bank, November 30 | Ā | $3,281 |
| Add: Deposits outstanding | Ā | $1,250 |
| Less: Checks outstanding | Ā | Ā |
| #363 | $128 | Ā |
| #365 | $206 | Ā |
| #380 | $61 | Ā |
| #381 | $91 | Ā |
| #382 | $390 | ($876) |
| Adjusted balance per bank, November 30 | Ā | 3,655 |
The companyās general ledger checking account showed the following for December:
| Balance, December 1 | $3,655 |
| Receipts | $43,150 |
| Disbursements | ($42,353) |
| Balance, December 31 | $4,452 |
The December bank statement contained the following information:
| Ā Ā Balance, December 1 | $3,281 |
| Ā Ā Deposits | $43,500 |
| Ā Ā Checks processed | ($42,418) |
| Ā Ā Service charges | ($27) |
| Ā Ā NSF checks | ($490) |
| Ā | Ā |
| Ā Ā Balance, December 31 | 3,846 |
The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $430 was correctly recorded by the bank but was incorrectly recorded on the books as a $340 disbursement for advertising expenses. Included in the bankās deposits is a $1,800 deposit incorrectly credited to the companyās account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved.
RequiredĀ
1. Prepare a bank reconciliation for the El Gato checking account on December 31, 2018.
2.Ā Prepare any necessary adjusting journal entries indicated.
