Question

At December 31, cash per the bank statement was $15,200; cash per the company's records was $18,000. Two debit memoranda accompanied the bank statement: service charges for December of $23, and a $975 check drawn by Jane Jones marked NSF. Cash receipts of $10,000 on December 31 were not deposited until January 4. The following checks had been issued in December but were not included among the paid checks returned by the bank: no. 620 for $800, no. 630 for $2,800, and no. 641 for $4,598. a. Prepare a bank reconciliation at December 31. b. Prepare the necessary journal entry or entries to update the accounting records.

Answer 1

See the answer in the explanation

Step-by-step explanation:

(a)

BANK RECONCILIATION STATEMENT

DECEMBER 31

Particulars Amount

Balance per bank statement $15,200

Add:

Deposited receipt of December 31 $10,000

Less:

Outstanding checks;

no. 620 $800

no. 630 $2,800

no. 641 $4,598 $8198

Adjusted cash balance $17,002

Balance per depositor's record $18,000

Less:

Service charge $23

Check drawn by Jane Jones $975 $998

Adjusted cash balance $17,002

(b)

GENERAL JOURNAL

DATE PARTICULAR DEBIT CREDIT

Dec. 31 Bank service charge $23

Account receivable $975

Cash $998