Bank Reconciliation The Seattle First Company's bank statement for the month of September indi- cated a balance of $13,375. The company's cash account in the general ledger showed a balance of S10,030 on September 30. Other relevant information includes the following: 1. Deposits in transit on September 30 total $9,850. 2. The bank statement shows a debit memorandum for a $95 check printing charge. 3. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon ac- count now has a $72 credit balance and the check to them should have been $568. 4. Outstanding checks as of September 30 totaled $11,600. 5. Check No. 276 was correctly written and paid by the bank for $574, The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. 6. The bank returned an NSF check in the amount of $1,110. 7. The bank included a credit memorandum for $2,620 representing a collection of a customer's note. The principal portion was $2,400 and the interest portion was $220. The interest had not been accrued. Required a. Prepare the September bank reconciliation for Seattle First Company. b. Prepare any necessary adjusting entries.
Bank Reconciliation The Seattle First Company's bank statement for the month of September indi- cated a balance of $13,375. The company's cash account in the general ledger showed a balance of S10,030 on September 30. Other relevant information includes the following: 1. Deposits in transit on September 30 total $9,850. 2. The bank statement shows a debit memorandum for a $95 check printing charge. 3. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon ac- count now has a $72 credit balance and the check to them should have been $568. 4. Outstanding checks as of September 30 totaled $11,600. 5. Check No. 276 was correctly written and paid by the bank for $574, The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. 6. The bank returned an NSF check in the amount of $1,110. 7. The bank included a credit memorandum for $2,620 representing a collection of a customer's note. The principal portion was $2,400 and the interest portion was $220. The interest had not been accrued. Required a. Prepare the September bank reconciliation for Seattle First Company. b. Prepare any necessary adjusting entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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P7-9A. Bank Reconciliation The Seattle First Company's bank statement for the month of September indi-
cated a balance of $13,375. The company's cash account in the general ledger showed a balance of
S10,030 on September 30. Other relevant information includes the following:
1. Deposits in transit on September 30 total $9,850.
2. The bank statement shows a debit memorandum for a $95 check printing charge.
3. Check number 238 payable to Simon Company was recorded in the accounting records for $496
and cleared the bank for this same amount. A review of the records indicated that the Simon ac-
count now has a $72 credit balance and the check to them should have been $568.
4. Outstanding checks as of September 30 totaled $11,600.
5. Check No. 276 was correctly written and paid by the bank for $574, The check was recorded in
the accounting records as a debit to accounts payable and a credit to cash for $754.
6. The bank returned an NSF check in the amount of S1,110.
7. The bank included a credit memorandum for $2,620 representing a collection of a customer's note.
The principal portion was $2,400 and the interest portion was $220. The interest had not been
accrued.
Required
a. Prepare the September bank reconciliation for Seattle First Company.
b. Prepare any necessary adjusting entries.
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