Seth and Company Inc. has provided the information to be able toreconcile its bank statement as of December 31, 2018. a. TheDecember 31 cash balance according to the accounting records is$32,878.30, and the bank statement cash balance for that date is$46,822.40. b. Check No. 1273 for $4,589.30 and Check No. 1282 for$400, both written and entered in the accounting records inDecember, are not among the canceled checks. Two checks, No. 1231for $2,289 and No. 1242 for $410.40, were outstanding on the mostrecent November 30 reconciliation. Check No. 1231 is listed withthe December canceled checks, but Check No. 1242 is not. c. Whenthe December checks are compared with entries in the accountingrecords, it is found that Check No. 1267 had been correctly drawnfor $3,456 to pay for office supplies but was erroneously enteredin the accounting records as $3,465. d. The bank statement includeda $762.50 charge that dealt with an NSF check for $745 receivedfrom a customer, Titus Industries, in payment of its account. Thebank assessed a $17.50 fee for processing it. e. The bank statementalso included a $99 in miscellaneous expenses for check printing.f. The bank statement shows that the bank collected $19,000 cash ona note receivable for the company, deducted a $20 collectionexpense, and credited the balance to the companyâs Cash account.Seth and Company Inc. did not record this transaction beforereceiving the statement. g. Seth and Company Inc. December 31 dailycash receipts of $9,583.10 were placed in the bankâs nightdepository on that date but do not appear on the December 31 bankstatement. Required 1. Prepare the bank reconciliation for thiscompany as of December 31, 2018.
Seth and Company Inc. has provided the information to be able toreconcile its bank statement as of December 31, 2018. a. TheDecember 31 cash balance according to the accounting records is$32,878.30, and the bank statement cash balance for that date is$46,822.40. b. Check No. 1273 for $4,589.30 and Check No. 1282 for$400, both written and entered in the accounting records inDecember, are not among the canceled checks. Two checks, No. 1231for $2,289 and No. 1242 for $410.40, were outstanding on the mostrecent November 30 reconciliation. Check No. 1231 is listed withthe December canceled checks, but Check No. 1242 is not. c. Whenthe December checks are compared with entries in the accountingrecords, it is found that Check No. 1267 had been correctly drawnfor $3,456 to pay for office supplies but was erroneously enteredin the accounting records as $3,465. d. The bank statement includeda $762.50 charge that dealt with an NSF check for $745 receivedfrom a customer, Titus Industries, in payment of its account. Thebank assessed a $17.50 fee for processing it. e. The bank statementalso included a $99 in miscellaneous expenses for check printing.f. The bank statement shows that the bank collected $19,000 cash ona note receivable for the company, deducted a $20 collectionexpense, and credited the balance to the companyâs Cash account.Seth and Company Inc. did not record this transaction beforereceiving the statement. g. Seth and Company Inc. December 31 dailycash receipts of $9,583.10 were placed in the bankâs nightdepository on that date but do not appear on the December 31 bankstatement. Required 1. Prepare the bank reconciliation for thiscompany as of December 31, 2018.
