E-Mail : support@onlinemathsguru.com
The cash account for Bonita Medical Co. at September 30, 2008, indicated a balance of $5,335.30. The bank statement indicated a balance of $5,604.60 on September 30, 2008. Comparing the bank statement and the accompanying canceled checks and memoranda with the records revealed the following reconciling items:
a.) Checks outstanding totaled $4,790.45
b.) A deposit of $9,226.15, representing receipts of Sept 30, had been made too late to appear on the bank statement.
c.) The bank had collected $7,725 on a note left for collection. The face of the note was $7,500.
d.) A check for $4,315 returned with the statement had been incorrectly recorded by Bonita Medical Co. as $3,415. The check was for the payment of an obligation to Rowe Co. for the purchase of office eqiupment on account.
e.) A check drawn for $230 had been erroneously charged by the bank as $2,300.
f.) Bank service charges for September amounted to $50.
1.) PREPARE A BANK RECONCILIATION
2.) JOURNALIZE THE NECESSARY ENTRIES. THE ACCOUNTS HAVE NOT BEEN CLOSED.