Bank Reconciliation Problem

Bank Reconciliation Problem #1 Information from the records and bank statement and of Matrix, Inc. as of July 31, 2018 is set forth below Cash balance per bank, July 31, 2018 Cash balance per general ledger, July 31, 2018 Outstanding checks at July 31, 2018 Check mailed to the bank for deposit that had not reached the bank by July 31, 2018 NSF check (from a customer for a payment on account) returned by bank July interest earned per bank statement Check no. 781 for supplies expense cleared the bank for $240, but was erroneously recorded in the books at $268 Deposit by Acme Company erroneously credited by the bank to our account $9,610 7,430 2,417 500 281 30 486 Required: Part A - Prepare the bank reconciliation for Matrix, Inc. Part B - Prepare any journal entries that should be made as a result of the bank reconciliation. Chapter 5 – Bank Reconciliation Problems Page 1 Part A - Prepare the bank reconciliation for Matrix, Inc. Matrix, Inc. Bank Reconciliation July 31, 2018 Updates to Bank Statement July 31 cash balance Additions: Deposit in transit Deductions: Bank error Outstanding checks Up-to-date cash balance $9,610 500 (486) (2,417) $7,207 Chapter 5 – Bank Reconciliation Problems Page 2 Updates to Company’s Books July 31 cash balance $7,430 Additions: Interest earned 30 Recording error check 28 781 Deductions: NSF check (281) Up-to-date cash balance $7,207 Part B Prepare any journal entries that should be made as a result of the bank reconciliation. Date July 31 Accounts Debit Cash Credit 30 Interest Revenue July 31 30 Cash 28 Supplies Expense July 31 28 Accounts Receivable Cash 281 281 Chapter 5 – Bank Reconciliation Problems Page 3 Bank Reconciliation Problem #2 – Prepare the bank reconciliation for Donna’s Day Care using the following information: Cash balance per bank, June 30, 2018 Cash balance per general ledger, June 30, 2018 Outstanding checks, June 30, 2018 Deposit in transit, June30, 2018 NSF check (from a customer for a payment on account) returned by bank June interest earned per bank statement Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was erroneously recorded in the books at $800 Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank statement as $6,200 Part A Prepare the bank reconciliation for Donna’s Day Care. Chapter 5 – Bank Reconciliation Problems Page 4 $5,586 5,055 1,816 750 450 15 Part B Prepare any journal entries that should be made as a result of the bank reconciliation. Date Accounts Debit Chapter 5 – Bank Reconciliation Problems Page 5 Credit SOLUTION BANK RECONCILIATION Prepare the bank reconciliation for Donna’s Day Care using the following information: Cash balance per bank, June 30, 2018 Cash balance per general ledger, June 30, 2018 Outstanding checks, June 30, 2018 Deposit in transit, June30, 2018 NSF check (from a customer for a payment on account) returned by bank June interest earned per bank statement Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was erroneously recorded in the books at $800 Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank statement as $6,200 $5,586 5,055 1,816 750 450 15 Part A Prepare the bank reconciliation for Donna’s Day Care. Donna’s Day Care Bank Reconciliation June 30, 2018 Updates to Bank Statement June 30 cash balance Additions: Deposit in transit Deductions: Bank error Outstanding checks Up-to-date cash balance $5,586 750 (200) (1,816) $4,320 Chapter 5 – Bank Reconciliation Problems Page 6 Updates to Company’s Books June 30 cash balance $5,055 Additions: Interest earned 15 Deductions: Recording error check 800 (300) NSF check (450) Up-to-date cash balance $4,320 Part B - Prepare any journal entries that should be made as a result of the bank reconciliation. Date June 30 Accounts Debit Cash Credit 15 Interest Revenue June 30 June 30 15 Accounts Payable Cash 300 Accounts Receivable Cash 450 300 450 Chapter 5 – Bank Reconciliation Problems Page 7