Bank Reconciliation  The bank reconciliation made by Thurman, Inc., on August 31 showed: Deposit in transit of   $1,170 Outstanding checks no.597 $650   no.603 $710 The reconciled cash balance on August 31 was   $14,110 The following bank statement is available for September: Bank Statement TO   Thurman, Inc.   September 30     St. Louis, MO   STATE BANK Date Deposits No.   Date Charges   Date Balance                   Aug. 31 $14,300 Sept. 1 $1,170 597   Sept. 1 $650   Sept. 1 14,820   2 1,120 607     5 1,850     2 15,940   5 850 608     5 1,100     5 13,840   9 744 609     8 640     8 13,200   15 585 610     9 552     9 13,392   17 1,540 611     15 817     15 13,160   25 1,028 612     17 488     17 14,212   30 680 614     25 920     25 14,320       NSF     29 991     29 13,329       SC     30 36     30 13,973                     , , Item codes EC: Error Correction   DM: Debit Memo   CM: Credit Memo     SC: Service Charge   OD: Overdraft   RT: Returned Item     IN: Interest Earned   NSF: Non-sufficient Funds     A list of deposits made and checks written during September is shown below: Deposits Made   Checks Written Sept. 1 $1,120   No. 607 $1,850   4 850     608 1,100   8 744     609 640   12 585     610 552   16 1,540     611 871   24 1,028     612 488   29 680     613 310   30 1,266     614 920     $7,813     615 386           616 420             $7,537 The Cash in Bank account balance on September 30 was $14,386. In reviewing checks returned by the bank, the accountant discovered that check No. 611 written for $817 for advertising expense, was recorded in the cash disbursements journal as $871. The NSF check written for $991, which Thurman deposited on September 24, was a payment on account from customer D. Walker. Required a. Prepare a bank reconciliation for Thurman, Inc., at September 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation. Bank reconciliation Journal entries THURMAN, INC. Bank Reconciliation September 30 Answer Answer   Answer Answer   Answer Answer   Add: Check No. 611 for Answer       Answer   recorded as Answer   Answer     Answer   Less: Outstanding checks (list in numerical order)   Less: NSF Check of D. Walker Answer       Check no. Amount           603 Answer     Answer Answer   Answer     Answer   Answer             Answer   Answer             Answer   Answer   Answer         Answer Answer   Answer Answer     General Journal Date Description Debit Credit Sept 30 Answer Answer   Answer       Answer Answer   Answer       To correct error in recording check 611.       30 Answer Answer   Answer       Answer Answer   Answer       To reclassify NSF check as an accounts receivable.       30 Answer Answer   Answer       Answer Answer   Answer       To record bank service charge.

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Bank Reconciliation 

The bank reconciliation made by Thurman, Inc., on August 31 showed:

Deposit in transit of   $1,170
Outstanding checks no.597 $650
  no.603 $710
The reconciled cash balance on August 31 was   $14,110


The following bank statement is available for September:

Bank Statement
TO   Thurman, Inc.   September 30
    St. Louis, MO   STATE BANK
Date Deposits No.   Date Charges   Date Balance
                  Aug. 31 $14,300
Sept. 1 $1,170 597   Sept. 1 $650   Sept. 1 14,820
  2 1,120 607     5 1,850     2 15,940
  5 850 608     5 1,100     5 13,840
  9 744 609     8 640     8 13,200
  15 585 610     9 552     9 13,392
  17 1,540 611     15 817     15 13,160
  25 1,028 612     17 488     17 14,212
  30 680 614     25 920     25 14,320
      NSF     29 991     29 13,329
      SC     30 36     30 13,973
                    , ,
Item codes EC: Error Correction   DM: Debit Memo   CM: Credit Memo
    SC: Service Charge   OD: Overdraft   RT: Returned Item
    IN: Interest Earned   NSF: Non-sufficient Funds    


A list of deposits made and checks written during September is shown below:

Deposits Made   Checks Written
Sept. 1 $1,120   No. 607 $1,850
  4 850     608 1,100
  8 744     609 640
  12 585     610 552
  16 1,540     611 871
  24 1,028     612 488
  29 680     613 310
  30 1,266     614 920
    $7,813     615 386
          616 420
            $7,537


The Cash in Bank account balance on September 30 was $14,386. In reviewing checks returned by the bank, the accountant discovered that check No. 611 written for $817 for advertising expense, was recorded in the cash disbursements journal as $871. The NSF check written for $991, which Thurman deposited on September 24, was a payment on account from customer D. Walker.

Required
a. Prepare a bank reconciliation for Thurman, Inc., at September 30.
b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

  • Bank reconciliation
  • Journal entries
THURMAN, INC.
Bank Reconciliation
September 30
Answer Answer
 
Answer Answer
 
Answer Answer
 
Add: Check No. 611 for Answer
 
 
  Answer
 
recorded as Answer
 
Answer
 
  Answer
 
Less: Outstanding checks (list in numerical order)   Less: NSF Check of D. Walker Answer
 
 
  Check no. Amount        
  603 Answer
 
  Answer Answer
 
Answer
 
  Answer
 
Answer
 
       
  Answer
 
Answer
 
       
  Answer
 
Answer
 
Answer
 
     
Answer Answer
 
Answer Answer
 

 

General Journal
Date Description Debit Credit
Sept 30 Answer Answer
 
Answer
 
    Answer Answer
 
Answer
 
    To correct error in recording check 611.    
  30 Answer Answer
 
Answer
 
    Answer Answer
 
Answer
 
    To reclassify NSF check as an accounts receivable.    
  30 Answer Answer
 
Answer
 
    Answer Answer
 
Answer
 
    To record bank service charge.    
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