Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at December 31, 2018: At December 31, cash per bank statement was $16,200; cash per the company’s records was $17,225.Two debit memoranda accompanied the bank statement: services charges for December of $25, and a $775 check drawn by Jane Jones marked “NSF”.Cash receipts of $9,000 on December 31 were deposited at the bank by end of day but were not shown in the bank statement until January 4.The following checks had been issued (written) in December but were not included among the paid checks returned by the bank: check no. 410 for $8,000 and check no. 425 for $2,500.Included in the bank statement was a check withdrawn (written) for an amount of $5,300 (rent expense) that was erroneously recorded for $3,500 in Alpha's records.The bank statement shows a credit (memorandum) interest of $75. Instructions Prepare a bank reconciliation at December 31, 2018.Prepare the necessary journal entries to update the accounting records as of December 31, 2018.

The bank reconciliation statement is the statement prepared to adjust the cash book balance and pass…

Answered: Shown below is the information needed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at December 31, 2018:

At December 31, cash per bank statement was $16,200; cash per the company’s records was $17,225.
Two debit memoranda accompanied the bank statement: services charges for December of $25, and a $775 check drawn by Jane Jones marked “NSF”.
Cash receipts of $9,000 on December 31 were deposited at the bank by end of day but were not shown in the bank statement until January 4.
The following checks had been issued (written) in December but were not included among the paid checks returned by the bank: check no. 410 for $8,000 and check no. 425 for $2,500.
Included in the bank statement was a check withdrawn (written) for an amount of $5,300 (rent expense) that was erroneously recorded for $3,500 in Alpha's records.
The bank statement shows a credit (memorandum) interest of $75.

Instructions

Prepare a bank reconciliation at December 31, 2018.
Prepare the necessary journal entries to update the accounting records as of

December 31, 2018.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions