Hi,
I am trying to reconcile this company's bank account for homework and I have become very confused. The reconciled balance should be 34,308 and the Credit Notes Rec. should be 9000. I cannot get this and I've started over three times. Maybe someone could help?
1. After all posting is complete on 7/31, the company's cash acct has a 26,193 debit balance, but it's july bank statement show a 28,020 cash bal.
2. Ck. 3031 for 1380 and ck 3040 for 552 were outstanding on 06/30 bank reconciliation. Ck 3040 is listed with the july caneled cks but ck 3031 is not. Also, ck 3065 for 336 and ck 3069 for 2148 bot written in july, are not among the canceled cks on the 07/31 statment.
3. In comparing eh canceled cks on the bank statement with the entries in the acct records, it is found that ck 3056 for july rent was correctly written and drawn for 1250 bit was erroneously entered int he acct records as 1230.
4. A credit memorandum enclosed with the AJuly bank statment indicates the bank collected 9000 cash on a noninterest=bearing note for Clark, deducted a 45 collection fee, and creditied the remainder to it's acct. Clark had not recorded this event before rec, the statement.
5. A debit memo for 805 lists a 795 nsf ck plus a 10 nsf chg. The ck had been rec. from a customer, Jin shaw. Clark has not yet recorded this ck as nsf.
6. Enclosed with the july statement is a 15 debit memo for bank svcs. It has not yet been recorded because no previous notification had been rec.
7. Clark's 7-31 daily cash receipts of 10,152 were placed in the bank's night depository on that date, but do not appear on the AJuly 31 bank statement.
Prepare bank rec. as of 7/31 and prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash bal os of 7/31/05
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