Miller Corporation’s December 31, 2016, bank statement showed a $2,054.25 balance. On this date, Miller’s Cash account reflected a $326.60 overdraft. In reconciling these amounts, the following information is discovered: 1.Cash on hand for undeposited sales receipts, December 31, $133.25.2.Customer NSF check returned with bank statement, $424.20.3.Cash sales of $627.25 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 $2,300.00 and interest of $23 collected by the bank and not recorded on the books.5.Deposit in transit December 31, $340.00.6.A customer check for $380.30 in payment of its account was recorded on the books at $830.30.7.Outstanding checks, $2,032.55. Includes a duplicate check of $65.85 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 journal entries necessary by Miller to record the information from Requirement 1.

1. Bank reconciliation MILLER CORPORATION Bank Reconciliation December 31, 2016 Balance per…

Answered: statement showed a $2,054.25 balance.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Miller Corporation’s December 31, 2016, bank statement showed a $2,054.25 balance. On this date, Miller’s Cash account reflected a $326.60 overdraft. In reconciling these amounts, the following information is discovered:


1.	Cash on hand for undeposited sales receipts, December 31, $133.25.
2.	Customer NSF check returned with bank statement, $424.20.
3.	Cash sales of $627.25 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 $2,300.00 and interest of $23 collected by the bank and not recorded on the books.
5.	Deposit in transit December 31, $340.00.
6.	A customer check for $380.30 in payment of its account was recorded on the books at $830.30.
7.	Outstanding checks, $2,032.55. Includes a duplicate check of $65.85 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 journal entries necessary by Miller to record the information from Requirement 1.

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