Question

Roper Electronics received its bank statement for the month of August with an ending balance of $11,740. Roper determined that check #613 for $155 and check #601 for $420 were both outstanding. Also, a $6,900 deposit for August 30 was in transit as of the end of the month. Northern Regional Bank also collected a $5,000 note receivable on August 1 that was issued March 1. Accrued interest is $250. Northern Regional Bank charged a $35 fee for the collection service. The bank statement reveals a bank service charge of $20. A customer check for $68 was returned with the bank statement marked "NSF." The ending balance of the Roper cash account is $12,938. Prepare a bank/account reconciliation and any necessary journal entries for the reconciliation.

Answer 1

Answer:

Bank Reconciliation Statement

Balance at Bank as per Updated Cash Book     $18,065

Add Unpresented Cheque

check #613                                            $155

check #601                                            $420           $575

Less Lodgements not yet credited                     ($6,900)

Balance as per bank statement                            $11,740

Explanation:

The first step is to update the bank balance in Roper Electronics cash book.

Debit :

Balance as per cash book                     $12,938

Interest                                                        $250

Note Received                                        $5,000

Totals                                                       $18,188

Credit:

Bank Charge - Collection Service               $35

Bank Service Charge                                   $20

Dishonored Cheque                                    $68

Balance as per updated cash book     $18,065

Totals                                                       $18,188

Then the next step is to prepare a bank reconciliation statement.

Bank Reconciliation Statement

Balance at Bank as per Updated Cash Book     $18,065

Add Unpresented Cheque

check #613                                            $155

check #601                                            $420           $575

Less Lodgements not yet credited                     ($6,900)

Balance as per bank statement                            $11,740