Question

Additional Information Check No. 5904 is correctly drawn for $2,090 to pay for computer equipment; however, the recordkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash of $2,060. The NSF check shown in the statement was originally received from a customer, S. Nilson, in payment of her account. Its return has not yet been recorded by the company. The credit memorandum (CM) is from the collection of a $1,500 note for Chavez Company by the bank. The bank deducted a $15 collection expense. The collection and expense are not yet recorded.

Answer 1

Answer:

Requirement: Prepare the September 2015 bank reconciliation for this company. Note: Missing table are attached as picture below

Adjusted Bank Balance

Bank statement balance                     $18,453.25

Add: Deposit in transit                         $1,682.75

                                                              $20,136

Less: Outstanding checks

CH #5893                           $494.25

CH #5906                           $982.30

CH #5908                           $388.00     $1,864.55

Adjusted Bank Balance                        $18,271.45

Adjusted Book Balance

Books Balance                                        $17,404.20

Add: Collect $1500 note, Less $15        $1,485

Interest earned                                        $12.50

                                                                 $18,901.70

Less: NSF Check                                     $600.25

Error in entry in check #904                   $30          

Adjusted Book Balance                          $18,271.45