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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 27
Preparing a bank reconciliation
Brett Knight operates four bowling alleys. He just received the October 31 bank statement from City National Bank, and the statement shows an ending balance of $905. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $70, and a $30 charge for printed checks. In reviewing his cash records, Knight identified outstanding checks totaling $450 and a deposit in transit of $1,775. During October, he recorded a $310 check by debiting Salary-expense and crediting Cash for $31. His Cash account shows an October 31 balance of $2,209.
Requirements
1. Prepare the bank reconciliation at October 31.
2. Journalize any transactions required from the bank reconciliation.
Brett Knight operates four bowling alleys. He just received the October 31 bank statement from City National Bank, and the statement shows an ending balance of $905. Listed on the statement are an EFT rent collection of $410, a service charge of $10, NSF checks totaling $70, and a $30 charge for printed checks. In reviewing his cash records, Knight identified outstanding checks totaling $450 and a deposit in transit of $1,775. During October, he recorded a $310 check by debiting Salary-expense and crediting Cash for $31. His Cash account shows an October 31 balance of $2,209.
Requirements
1. Prepare the bank reconciliation at October 31.
2. Journalize any transactions required from the bank reconciliation.
Explanation
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Verified
Journalizing is the chronologi...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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