Bank Reconciliation The Seattle First Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following:Deposits in transit on September 30 total $9,850. The bank statement shows a debit memorandum for a check printing charge of $95. Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568. Outstanding checks as of September 30 totaled $11,600. Check No. 276 was correctly written and paid by the bank for $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754. The bank returned a NSF check in the amount of $1,110. The bank included a credit memorandum for $2,620 representing a collection of a customer’s note. The principle portion was $2,400 and the interest portion was $220. The interest had not been accrued. Requireda. Prepare the September bank reconciliation for Seattle First Company.b. Prepare any necessary adjusting entries.Bank reconciliationJournal entriesNote: Do not use negative signs with any of your answers. SEATTLE FIRST COMPANYBank ReconciliationSeptember 30Cash Balance per Bank AnswerAnswer AnswerAnswer AnswerAnswer AnswerCash Balance per Books AnswerAdd: Accounts Payable ErrorAnswer AnswerAnswerAnswerLess: Check Printing ChargeAnswer AnswerAnswerAnswerAnswer AnswerGENERAL JOURNALDateDescriptionDebitCreditSept30AnswerAnswerAnswer AnswerAnswerAnswer To correct check error in recording check No. 276. 30AnswerAnswerAnswer Notes ReceivableAnswerAnswer AnswerAnswerAnswer To record note collection by bank. 30AnswerAnswerAnswer AnswerAnswerAnswer To record check printing charge. 30AnswerAnswerAnswer AnswerAnswerAnswer To record NSF check.

A bank reconciliation statement is prepared to match the bank balance shown in the books of accounts…

Answered: t in the general ledger showed a…

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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Bank Reconciliation

The Seattle First Company’s bank statement for the month of September indicated a balance of $13,375. The company’s cash account in the general ledger showed a balance of $10,030 on September 30. Other relevant information includes the following:

Deposits in transit on September 30 total $9,850.
The bank statement shows a debit memorandum for a check printing charge of $95.
Check number 238 payable to Simon Company was recorded in the accounting records for $496 and cleared the bank for this same amount. A review of the records indicated that the Simon account now has a $72 credit balance and the check to them should have been $568.
Outstanding checks as of September 30 totaled $11,600.
Check No. 276 was correctly written and paid by the bank for $574. The check was recorded in the accounting records as a debit to accounts payable and a credit to cash for $754.
The bank returned a NSF check in the amount of $1,110.
The bank included a credit memorandum for $2,620 representing a collection of a customer’s note. The principle portion was $2,400 and the interest portion was $220. The interest had not been accrued.

Required
a. Prepare the September bank reconciliation for Seattle First Company.
b. Prepare any necessary adjusting entries.

Bank reconciliation
Journal entries

Note: Do not use negative signs with any of your answers.

SEATTLE FIRST COMPANY Bank Reconciliation September 30
Cash Balance per Bank		Answer
Answer		Answer
Answer		Answer
Answer		Answer
Cash Balance per Books		Answer
Add: Accounts Payable Error	Answer
Answer	Answer	Answer
Less: Check Printing Charge	Answer
Answer	Answer	Answer
Answer		Answer

GENERAL JOURNAL
Date	Description	Debit	Credit
Sept	30	Answer	Answer	Answer
		Answer	Answer	Answer
		To correct check error in recording check No. 276.
	30	Answer	Answer	Answer
		Notes Receivable	Answer	Answer
		Answer	Answer	Answer
		To record note collection by bank.
	30	Answer	Answer	Answer
		Answer	Answer	Answer
		To record check printing charge.
	30	Answer	Answer	Answer
		Answer	Answer	Answer
		To record NSF check.

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