Miller Corporation’s December 31, 2019, bank statement showed a $2,041.25 balance. On this date, Miller’s Cash account reflected a $150.90 overdraft. In reconciling these amounts, the following information is discovered: 1.Cash on hand for undeposited sales receipts, December 31, $131.25.2.Customer NSF check returned with bank statement, $426.20.3.Cash sales of $625.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.4.Note receivable of $2,400.00 and interest of $24 collected by the bank and not recorded on the books.5.Deposit in transit December 31, $330.00.6.A customer check for $195.40 in payment of its account was recorded on the books at $945.10.7.Outstanding checks, $2,030.55. Includes a duplicate check of $63.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount. Instructions:1.Prepare a December 31 bank reconciliation for Miller.2.Prepare any journal entries necessary by Miller to record the information from Step 1.

Journal entry is a primary entry that records the financial transactions initially.

Answered: Miller Corporation’s December 31, 2019,…

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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Miller Corporation’s December 31, 2019, bank statement showed a $2,041.25 balance. On this date, Miller’s Cash account reflected a $150.90 overdraft. In reconciling these amounts, the following information is discovered:


1.	Cash on hand for undeposited sales receipts, December 31, $131.25.
2.	Customer NSF check returned with bank statement, $426.20.
3.	Cash sales of $625.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.
4.	Note receivable of $2,400.00 and interest of $24 collected by the bank and not recorded on the books.
5.	Deposit in transit December 31, $330.00.
6.	A customer check for $195.40 in payment of its account was recorded on the books at $945.10.
7.	Outstanding checks, $2,030.55. Includes a duplicate check of $63.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount.

	Instructions:
1.	Prepare a December 31 bank reconciliation for Miller.
2.	Prepare any journal entries necessary by Miller to record the information from Step 1.

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