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Preparation of Bank Reconciliation Statement.
The bank statement for Kaibab Enterprises indicates a balance of $8,509.00 on Sept. 30, 2007. After the journals for September had been posted, the cash account had a balance of $4,054.00. Don't forget the heading. Prepare a bank reconciliation on the basis of the following reconciling items:
a. Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324. b. Deposits in transit not recorded by bank, $770.00. c. Bank debit memorandum for service charges, $25.00. d. Bank credit memorandum for note collected by bank, $3,250, including $50 interest ($50 is included in the $3,250). e. Bank debit memorandum for $218.00 NSF (not sufficient funds) check from Jill Sanders, a customer. Checks outstanding, $2,200.00.
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