Reconciliation of Bank and Company Cash Amounts (Appendix 6.1) MillerCorporation’s December 31, 2019, bank statement showed a $2,049.25 balance. On thisdate, Miller’s Cash account reflected a $325.60 overdraft. In reconciling theseamounts, the following information is discovered:1. Cash on hand for undeposited sales receipts, December 31, $130.25.2. Customer NSF check returned with bank statement, $420.40.3. Cash sales of $640.25 for the week ended December 18 were recorded on thebooks. The cashier reports this amount missing, and it was not deposited in thebank.4. Note receivable of $2,500 and interest of $25 collected by the bank and notrecorded on the books.5. Deposit in transit December 31, $350.00.6. A customer check for $290.40 in payment of its account was recorded on thebooks at $940.20.7. Outstanding checks, $2,040.55. Includes a duplicate check of $70.85 to C.Brown, who notified Miller that the original was lost. Miller stopped payment onthe original check and has already adjusted the cash account in the accountingrecords for this amount.Required:1. Prepare a December 31 bank reconciliation for Miller.2. Prepare any journal entries necessary by Miller to record the informationfrom Requirement 1
Reconciliation of Bank and Company Cash Amounts (Appendix 6.1) Miller
Corporation’s December 31, 2019, bank statement showed a $2,049.25 balance. On this
date, Miller’s Cash account reflected a $325.60 overdraft. In reconciling these
amounts, the following information is discovered:
1. Cash on hand for undeposited sales receipts, December 31, $130.25.
2. Customer NSF check returned with bank statement, $420.40.
3. Cash sales of $640.25 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 $2,500 and interest of $25 collected by the bank and not
recorded on the books.
5. Deposit in transit December 31, $350.00.
6. A customer check for $290.40 in payment of its account was recorded on the
books at $940.20.
7. Outstanding checks, $2,040.55. Includes a duplicate check of $70.85 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.
Required:
1. Prepare a December 31 bank reconciliation for Miller.
2. Prepare any
from Requirement 1
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