Below are the reconciling items for August 2016 for Green Expo Corp: 1. The bank statement for August 2016 shows an ending balance of $3,490. 2. On August 31 the bank statement shows charges of $35 for the service charge for maintaining the checking account. 3. On August 28 the bank statement shows a return item of $100 plus a related bank fee of $10. The return item is a customer's check that was returned because of insufficient funds. The check was also marked "do not redeposit. 4. The bank statement shows a charge of $80 for check printing on August 20. 5. The bank statement shows that $8 was added to the checking account on August 31 for interest earned by the company during the month of August. 6. The bank statement shows that a note receivable of $1,000 was collected by the bank on August 29 and was deposited into the company's account. On the same day, the bank withdrew $40 from the company's account as a fee for collecting the note receivable. 7. The company's Cash account at the end of August shows a balance of $967. S. During the month of August the company wrote checks totaling more than $50,000. As of August 31 $3,021 of the checks written in August had not yet cleared the bank and $200 of checks written in June had not yet cleared the bank. 9. The $1,450 of cash received by the company on August 31 was recorded on the company's books as of August 31. However, the $1,450 of cash receipts was deposited at the bank on the morning of September 1. 10. On August 29 the company's Cash account shows cash sales of $145. The bank statement shows the amount deposited was actually $154. The company reviewed the transactions and found that $154 was the correct amount. Required: Prepare the bank reconciliation as of August 31, 2016 for Green Expo Corp. Prepare the associated journal entries. Date them Aug 31, 2016
Below are the reconciling items for August 2016 for Green Expo Corp: 1. The bank statement for August 2016 shows an ending balance of $3,490. 2. On August 31 the bank statement shows charges of $35 for the service charge for maintaining the checking account. 3. On August 28 the bank statement shows a return item of $100 plus a related bank fee of $10. The return item is a customer's check that was returned because of insufficient funds. The check was also marked "do not redeposit. 4. The bank statement shows a charge of $80 for check printing on August 20. 5. The bank statement shows that $8 was added to the checking account on August 31 for interest earned by the company during the month of August. 6. The bank statement shows that a note receivable of $1,000 was collected by the bank on August 29 and was deposited into the company's account. On the same day, the bank withdrew $40 from the company's account as a fee for collecting the note receivable. 7. The company's Cash account at the end of August shows a balance of $967. S. During the month of August the company wrote checks totaling more than $50,000. As of August 31 $3,021 of the checks written in August had not yet cleared the bank and $200 of checks written in June had not yet cleared the bank. 9. The $1,450 of cash received by the company on August 31 was recorded on the company's books as of August 31. However, the $1,450 of cash receipts was deposited at the bank on the morning of September 1. 10. On August 29 the company's Cash account shows cash sales of $145. The bank statement shows the amount deposited was actually $154. The company reviewed the transactions and found that $154 was the correct amount. Required: Prepare the bank reconciliation as of August 31, 2016 for Green Expo Corp. Prepare the associated journal entries. Date them Aug 31, 2016
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:# Bank Reconciliation for Green Expo Corp - August 2016
## Reconciling Items
1. **Ending Balance**: The bank statement for August 2016 shows an ending balance of $3,490.
2. **Service Charge**: On August 31, the bank statement shows a charge of $35 for maintaining the checking account.
3. **Returned Check**: On August 28, there is a return item of $100 plus a $10 bank fee. This is for a customer's check returned due to insufficient funds. The check is marked "do not redeposit."
4. **Check Printing Charge**: A charge of $80 is noted for check printing on August 20.
5. **Interest Earned**: The bank statement shows an addition of $8 for interest earned on August 31.
6. **Note Receivable Collection**: A note receivable of $1,000 was collected on August 29 and deposited. Additionally, the bank withdrew $40 as a fee for this transaction.
7. **Cash Account Balance**: At the end of August, the company’s cash account shows a balance of $967.
8. **Uncleared Checks**: As of August 31, $3,021 of checks written in August and $200 from June had not cleared the bank.
9. **Cash Receipt Timing**: A cash receipt of $1,450 recorded on August 31 was deposited on September 1.
10. **Cash Sales Recording**: On August 29, the cash account shows sales of $145. The bank confirmed the correct amount as $154.
## Requirements
- **Bank Reconciliation**: Prepare the reconciliation as of August 31, 2016.
- **Journal Entries**: Prepare the associated entries, dated August 31, 2016.
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