How do you prepare a bank reconcliation?Show the accounting entries that must be made in journal or t-account format. SMITH INC. BANK RECONCILIATIONCash balance per bank$8,200Cash balance per books (general ledger)$6,500Outstanding checks$2,460Check mailed to the bank for deposit had not reached the bank by the statement date.$500NSF check returned by the bank for accounts receivable$100July interest earned on the bank statement$20Check no. 700 for misc. expense cleared the bank for $200; erroneously recorded in the Matrix books for $20

Bank reconciliation statement: It is prepared to match the the entity's financial statement with the…

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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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How do you prepare a bank reconcliation?Show the accounting entries that must be made in journal or t-account format.

SMITH INC. BANK RECONCILIATION
Cash balance per bank	$8,200
Cash balance per books (general ledger)	$6,500
Outstanding checks	$2,460
Check mailed to the bank for deposit had
not reached the bank by the statement
date.	$500
NSF check returned by the bank for
accounts receivable	$100
July interest earned on the bank statement	$20
Check no. 700 for misc. expense cleared
the bank for $200; erroneously recorded
in the Matrix books for $20

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