I am in Acct 101 and have a problem concerning bank reconciliations but there is nothing in our entire book that discussed bank reconciliations. I think I can figure most of it out if I know I am pointed in the right direction. Here is my problem:

Using the following information, record journal entries that would be necessary after preparing the bank reconciliation for ABC Company.
1. outstanding checks total $1501.95
2. the book balance is $6278.50
3. the bank service charge based on bank statement is $65
4. a deposit of $200 was credited to ABC Company for $2000 by the bank
5. the bookkeeper recorded a check for $1329 as $13,290 in payment for insurance
6. a customer's check for $325 was returned for insufficient funds
7. checks #427 for $320. And #432 for $711.25 are not among canceled checks

I can see the cash flow for most of these problems but which journal or journals would be affected and how do you journalize bank reconciliation items? Do you have to journalize every single item or do you just journalize those items that affect cash?

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Originally Posted by imann

I am in Acct 101 and have a problem concerning bank reconciliations but there is nothing in our entire book that discussed bank reconciliations. I think I can figure most of it out if I know I am pointed in the right direction. Here is my problem:

Using the following information, record journal entries that would be necessary after preparing the bank reconciliation for ABC Company.
1. outstanding checks total $1501.95
2. the book balance is $6278.50
3. the bank service charge based on bank statement is $65
4. a deposit of $200 was credited to ABC Company for $2000 by the bank
5. the bookkeeper recorded a check for $1329 as $13,290 in payment for insurance
6. a customer's check for $325 was returned for insufficient funds
7. checks #427 for $320. and #432 for $711.25 are not among canceled checks

I can see the cash flow for most of these problems but which journal or journals would be affected and how do you journalize bank reconciliation items? Do you have to journalize every single item or do you just journalize those items that affect cash?

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You need to study the chapter a little bit more.
In answer to your question, you would need to write journal entries for the following;
3.
5.
6.

The other items listed would affect your bank rec, but would not require a journal entry