Prepare a bank reconciliation statement for the firm

Assignment Help Accounting Basics

Reference no: EM132445677

This assessment addresses the following course objective(s):

Record various business transactions in accordance with generally accepted accounting principles. In this assignment, we will learn how to reconcile a bank account.

Bank reconciliation is a key internal control function to ensure all cash transactions are correctly recorded, but it can also detect some irregularities when performed monthly.

On December 31, Surat's Warehouse received a bank statement containing a balance of $19,500.

The balance in the firm's checkbook and Cash account on the same date was $20,580. The difference between the two balances is caused by the items listed below.

a. A $5,750 deposit made on December 30 does not appear on the bank statement.

b. Check 1312 for $970 issued on November 29 and Check 1375 for $3,300 issued on December 30 have not yet been paid by the bank.

c. A credit memorandum shows that the bank has collected a $2,200 note receivable and interest of $220 for the firm.

d. A service charge of $50 appears on the bank statement.

e. A debit memorandum shows an NSF check for $1,050. (The check was issued by R. Donnelley, a credit customer.)

f. The firm's records indicate that Check 1316 of December 1 was issued for $1,800 to pay the month's rent. However, the canceled check and the listing on the bank statement show that the actual amount of the check was $1,600.

g. The bank made an error by deducting a check for $1,120 issued by another business from the balance of the account of Designer's Warehouse.

Instructions:

1. Prepare a bank reconciliation statement for the firm as of December 31, 2016.

2. Record entries for any items on the bank reconciliation statement that must be journalized. Date the entries December 31, 2016.

Attachment:- Bank Rec Template.rar

Reference no: EM132445677

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