Bank Reconciliations a sample problem
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Bank Reconciliations a sample problem
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 2
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 3
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 4
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 5
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 6
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 7
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 8
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 9
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 10
Bank’s Records Company’s Records Copyright 2011 by M. Ray Gregg. All rights reserved. 11
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 12
Bank’s Records Company’s Records Beginning Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 13
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 14
Bank’s Records Beginning Balance 19,913.90 Company’s Records Beginning Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 15
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 16
Bank’s Records Beginning Balance (a) Outstanding checks 19,913.90 Company’s Records Beginning Balance 14,691.80 7,070.10 Copyright 2011 by M. Ray Gregg. All rights reserved. 17
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 18
Bank’s Records Beginning Balance (b) Deposits in transit 19,913.90 4,945.20 (a) Outstanding checks 7,070.10 Company’s Records Beginning Balance 14,691.80 19
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 20
Bank’s Records Beginning Balance (b) Deposits in transit 19,913.90 4,945.20 (a) Outstanding checks 7,070.10 Company’s Records Beginning Balance (c) Note and Interest 14,691.80 3,120.00 21
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 22
Bank’s Records Beginning Balance (b) Deposits in transit 19,913.90 4,945.20 (a) Outstanding checks 7,070.10 Company’s Records Beginning Balance (c) Note and Interest (d) Printed checks 14,691.80 3,120.00 40.00 23
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 24
Bank’s Records Beginning Balance (b) Deposits in transit (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (d) Printed checks 14,691.80 3,120.00 40.00 25
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 26
Bank’s Records Beginning Balance (b) Deposits in transit (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks 14,691.80 3,120.00 27.00 40.00 27
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 28
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks 14,691.80 3,120.00 27.00 40.00 29
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10. b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 30
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 31
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 32
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 33
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 34
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 35
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 36
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 37
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 38
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 39
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 40
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 41
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 42
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 19,913.90 4,963.20 24,877.10 Adjusted Balance 7,100.10 17,777.00 Balance according to depositor's records 14,691.80 Copyright 2011 by M. Ray Gregg. All rights reserved. 43
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.10 17,777.00 14,691.80 3,000.00 44
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.10 17,777.00 14,691.80 3,000.00 45
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 46
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 47
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 48
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 49
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 50
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 51
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 52
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 53
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 54
Bank’s Records Beginning Balance (b) Deposits in transit (g) Error in check (a) Outstanding checks (e) Error in deposit 19,913.90 4,945.20 18.00 7,070.10 30.00 Company’s Records Beginning Balance (c) Note and Interest (f) Error in check (d) Printed checks (h) Bank service charges 14,691.80 3,120.00 27.00 40.00 21.80 55
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 56
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 57
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 58
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 59
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 60
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 61
Bank Reconciliation Sample Problem The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of 14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of 19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a) Checks outstanding totaled 7,070.10 b) A deposit of 4,945.20, representing receipts of May 31, had been made too late to appear on the bank statement. c) The bank had collected 3,120 on an interest-bearing note left for collection. The face of the note was 3,000. d) The bank statement included a debit memo for printing costs for additional checks of 40. e) The cash receipts journal and a deposit slip correctly indicated cash sales of 522. The bank credited the company’s account for 552. f) A check for 69 returned with the statement had been recorded erroneously in the cash payments journal as 96. The check was for the payment for the purchase of office supplies on account. g) A check drawn for 24 had been erroneously charged by the bank as 42. h) Bank service charges for May amounted to 21.80 Instructions: 1. Prepare a bank reconciliation. 2. Record the necessary entries in general journal form. Copyright 2011 by M. Ray Gregg. All rights reserved. 62
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 63
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 64
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 65
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 66
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date Account Title 5/31 Cash Notes Receivable Interest Revenue Accounts Payable Ref. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 3,147.00 3,000.00 120.00 27.00 67
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date Account Title 5/31 Cash Notes Receivable Interest Revenue Accounts Payable Ref. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 3,147.00 3,000.00 120.00 27.00 68
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date Account Title 5/31 Cash Notes Receivable Interest Revenue Accounts Payable Ref. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 3,147.00 3,000.00 120.00 27.00 69
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 70
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 71
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date 5/31 Account Title 14,691.80 3,000.00 120.00 27.00 Ref. Miscellaneous Expense Cash Copyright 2011 by M. Ray Gregg. All rights reserved. 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 61.80 61.80 72
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date 5/31 Account Title 14,691.80 3,000.00 120.00 27.00 Ref. Miscellaneous Expense Cash Copyright 2011 by M. Ray Gregg. All rights reserved. 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 61.80 61.80 73
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Date 5/31 Account Title 14,691.80 3,000.00 120.00 27.00 Ref. Miscellaneous Expense Cash Copyright 2011 by M. Ray Gregg. All rights reserved. 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 Debit Credit 61.80 61.80 74
J. B. Lindsay Company Bank Reconciliation May 31, 201x Balance according to bank Add: (b) Deposit in transit 4,945.20 (g) Bank error in recording check 18.00 Sub-total Deduct: (a) Outstanding checks 7,070.10 (e) Error in deposit 30.00 Adjusted Balance Balance according to depositor's records Add: (c) Note Receivable (c) Interest Revenue (f) Error in recording check Sub-total Deduct: (d) Printing of company checks (h) Bank service charges Adjusted Balance Copyright 2011 by M. Ray Gregg. All rights reserved. 19,913.90 4,963.20 24,877.10 7,100.00 17,777.00 14,691.80 3,000.00 120.00 27.00 40.00 21.80 3,147.00 17,838.80 61.80 17,777.00 75
Bank Reconciliations a sample problem
Copyright 2011 by M. Ray Gregg. All rights reserved. 77
