BANK RECONCILIATION
The September 30 bank statement for MJM Ltd had an endingbalance of $29,160.27. The cash account according to the companyâsrecords was $33,164.52 as at the same date. The followingadditional data was available:
1. The company had made a deposit in the night box of $13,200.00on the 30th after the branch was closed.
2. There were outstanding cheques totalling $13,432.75 as atSeptember 30.
3. The bank service fee was $50.00 for the month.
4. A cheque in the amount of $10,075.00 deposited by MJM onSeptember 28th had been returned NSF and the bank charged a $12.00fee on the item. MJM had not known about the returned item until itreceived the bank statement.
5. A cheque in the amount $7,500 wasprocessed through the bank account for $5,700. It was correctlyrecorded in the books.
6. A deposit was made directly into the bank account by a customerfor $4,100 that was not recorded in the books at September30th.
Required: Prepare the bankreconciliation for MJM Ltd for the month of September. Prepare thenecessary journal entries.
BANK RECONCILIATION
The September 30 bank statement for MJM Ltd had an endingbalance of $29,160.27. The cash account according to the companyâsrecords was $33,164.52 as at the same date. The followingadditional data was available:
1. The company had made a deposit in the night box of $13,200.00on the 30th after the branch was closed.
2. There were outstanding cheques totalling $13,432.75 as atSeptember 30.
3. The bank service fee was $50.00 for the month.
4. A cheque in the amount of $10,075.00 deposited by MJM onSeptember 28th had been returned NSF and the bank charged a $12.00fee on the item. MJM had not known about the returned item until itreceived the bank statement.
5. A cheque in the amount $7,500 wasprocessed through the bank account for $5,700. It was correctlyrecorded in the books.
6. A deposit was made directly into the bank account by a customerfor $4,100 that was not recorded in the books at September30th.
Required: Prepare the bankreconciliation for MJM Ltd for the month of September. Prepare thenecessary journal entries.
Related questions
| Prepare a bank reconciliation. Required: Show the accounting entries that must be made byMatrix in journal entry and T-Account format MATRIX INC. BANKRECONCILIATION | |
Cash balance per bank | $8,500 |
Cash balance per books (general ledger) | $7,320 |
Outstanding checks | $3,6000 |
Check mailed to the bank for deposit had | |
not reached the bank by the statement | |
date. | $2,050 |
NSF check returned by the bank for | |
accounts receivable | $200 |
July interest earned on the bank statement | $10 |
Check no. 700 for misc. expense cleared | |
the bank for $200; erroneously recorded | |
in the Matrix books for $20 | |
The bank reconciliation prepared by Gatz Company on May 31,2017, appeared as follows:
| GATZ COMPANY | |||||
| Bank Reconciliation | |||||
| May 31, 2017 | |||||
| Bank statementbalance | $9,264.35 | Book balance | $19,429.00 | ||
| Add: | |||||
| Deposit of May 31 in transit | 949.00 | ||||
| $10,213.35 | |||||
| Deduct: | Deduct: | ||||
| Outstanding cheques: | NSF cheque plusservice | ||||
| #876 | $636.00 | charge | $11,530.65 | ||
| #882 | 1,744.00 | 2,380.00 | Bank servicecharge | 65.00 | 11,595.65 |
| Adjusted bankbalance | $7,833.35 | Adjusted bookbalance | $7,833.35 | ||
The Cash account in the General Ledger appeared as follows on June30 (Gatz uses only a General Journal to recordtransactions):
| Cash | Acct. No.101 | ||||
| Date | Explanation | PR | Debit | Credit | Balance |
| 2017 | |||||
| May 31 | Balance | 7,833.35 | |||
| June 1 | Cheque #883 | GJ16 | 1,847.00 | 5,986.35 | |
| 1 | Cheque #884 | GJ16 | 107.00 | 5,879.35 | |
| 3 | Cheque #885 | GJ16 | 618.00 | 5,261.35 | |
| 4 | Cheque #886 | GJ16 | 1,917.00 | 3,344.35 | |
| 9 | Deposit | GJ16 | 4,579.00 | 7,923.35 | |
| 12 | Cheque #887 | GJ16 | 425.15 | 7,498.20 | |
| 12 | Cheque #888 | GJ16 | 3,138.00 | 4,360.20 | |
| 12 | Cheque #889 | GJ16 | 936.00 | 3,424.20 | |
| 18 | Deposit | GJ16 | 3,879.00 | 7,303.20 | |
| 20 | Cheque #890 | GJ16 | 2,537.00 | 4,766.20 | |
| 21 | Cheque #891 | GJ16 | 1,406.24 | 3,359.96 | |
| 24 | Cheque #892 | GJ16 | 2,492.00 | 867.96 | |
| 26 | Cheque #893 | GJ16 | 71.00 | 796.96 | |
| 29 | Deposit | GJ16 | 1,745.00 | 2,541.96 | |
The following bank statement is available for June:
| Bank Statement | |||||
| To: GatzCompany | June 30, 2017 Bank of Montreal | ||||
| Cheques/Charges | Deposits/Credits | Balance | |||
| 05/31 | 9,264.35 | ||||
| #884 | 06/01 | 107.00 | 06/01 | 949.00 | 10,106.35 |
| #883 | 06/04 | 1,847.00 | 8,259.35 | ||
| #876 | 06/09 | 636.00 | 06/09 | 4,579.00 | 12,202.35 |
| #889 | 06/12 | 936.00 | 11,266.35 | ||
| #882 | 06/14 | 1,744.00 | 9,522.35 | ||
| #887 | 06/18 | 245.15 | 06/18 | 3,879.00 | 13,156.20 |
| #885 | 06/20 | 618.00 | 12,538.20 | ||
| #891 | 06/21 | 1,046.24 | 11,491.96 | ||
| #886 | 06/29 | 1,917.00 | 9,574.96 | ||
| SC | 06/30 | 72.00 | 06/30 | 9,502.96 | |
| NSF = Not Sufficient Funds | SC = Service Charge | PMT = Principal Payment | INT = Interest | ||
Required:
a. Prepare a bank reconciliation at June 30, 2017. Assumethat any errors made were by the book keeper (cheque #887 was foroffice supplies; cheque #891 was for utilities expense).(Round the final answers to the nearest cent.)
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b. Prepare the necessary entries resulting fromthe bank reconciliation.
Journal entry worksheet
Record to account for error in Cheque #887.
Note: Enter debits before credits.
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Journal entry worksheet
Record to account for error in Cheque #891.
Note: Enter debits before credits.
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Journal entry worksheet
Record bank service charges for June.
Note: Enter debits before credits.
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