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 Sept. 1 $1,170 597 Sept. 1 $650 Aug. 31 $14,300 2 1,120 607 5 1,850 Sept. 1 14,820 5 850 608 5 1,100 2 15,940 9 744 609 9 552 5 13,840 15 585 610 8 640 8 13,200 17 1,540 611 15 817 9 13,392 25 1,028 612 17 488 15 16,160 30 680 614 25 920 17 14,212 NSF 29 991 25 14,320 SC 30 36 29 13,329 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 8 744 609 552 12 585 610 640 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

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 Sept. 1 $1,170 597 Sept. 1 $650 Aug. 31 $14,300 2 1,120 607 5 1,850 Sept. 1 14,820 5 850 608 5 1,100 2 15,940 9 744 609 9 552 5 13,840 15 585 610 8 640 8 13,200 17 1,540 611 15 817 9 13,392 25 1,028 612 17 488 15 16,160 30 680 614 25 920 17 14,212 NSF 29 991 25 14,320 SC 30 36 29 13,329 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 8 744 609 552 12 585 610 640 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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
Sept.	1	$1,170	597		Sept.	1	$650		Aug.	31	$14,300
	2	1,120	607			5	1,850		Sept.	1	14,820
	5	850	608			5	1,100			2	15,940
	9	744	609			9	552			5	13,840
	15	585	610			8	640			8	13,200
	17	1,540	611			15	817			9	13,392
	25	1,028	612			17	488			15	16,160
	30	680	614			25	920			17	14,212
			NSF			29	991			25	14,320
			SC			30	36			29	13,329
										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	552
	12	585		610	640
	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

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