The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:1.Cash balance according to the company’s records at July 31, $24,270.2.Cash balance according to the bank statement at July 31, $32,278.3.Checks outstanding, $14,668.4.Deposit in transit, not recorded by bank, $7,170.5.A check for $58 in payment of an account was erroneously recorded in the check register as $580.6.Bank debit memo for service charges, $12. Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

Bank reconciliation statement is prepared by almost every organization at a particular time. It is a statement that is required to match the cash balance with the bank balance. We need to adjust check outstanding, cheque deposited but not collected, directly deposited into Bank, NSF check, etc

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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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The following data were accumulated for use in reconciling the bank account of Mathers Co. for July:

1.	Cash balance according to the company’s records at July 31, $24,270.
2.	Cash balance according to the bank statement at July 31, $32,278.
3.	Checks outstanding, $14,668.
4.	Deposit in transit, not recorded by bank, $7,170.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $12.

Journalize the entry or entries that should be made by the company. Refer to the Chart of Accounts for exact wording of account titles.

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