As on October 31, the city cleaners have available the following data concerning its bank checking account: 1. On October 31, cash as per the bank statement was $37,758; but as per company’s record /cash book, the amount was $ 42,500. 2. The cash receipt of $ 6,244 on October 31, were deposited on Nov.01. 3. Included in the bank statement was a credit for $ 167 interest earned on the checking account during October. 4. Two checks were outstanding at October 31: No.921 for $ 964 and No. 925 for $ 1,085 5. Enclosed with the bank statement were two debit memoranda for the following item:i). service charges for October, $ 14; and ii). $700 check received from a customer Zahid , subsequently sent to Bank but it was marked as NSF. Required: Prepare bank reconciliation at October 31 and adjusting entries based on the bank reconciliation adjustments.
As on October 31, the city cleaners have available the following data concerning its bank checking account:
1. On October 31, cash as per the bank statement was $37,758; but as per company’s record /
2. The cash receipt of $ 6,244 on October 31, were deposited on Nov.01.
3. Included in the bank statement was a credit for $ 167 interest earned on the checking account during October.
4. Two checks were outstanding at October 31: No.921 for $ 964 and No. 925 for $ 1,085
5. Enclosed with the bank statement were two debit memoranda for the following item:i). service charges for October, $ 14; and ii). $700 check received from a customer Zahid , subsequently sent to Bank but it was marked as NSF.
Required: Prepare bank reconciliation at October 31 and
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