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Bank reconciliation and entries                           The following information was available to reconcile Nelson Company's book cash             balance with its bank statement as of September 30, 2021:                           The September 30 cash balance according to the accounting records was $21,870.                           Oustanding checks from August's bank reconciliation:             Check # 356   $1,240         Check # 357   775         Check # 359   3,280         Check # 360   924                       Below is a record of the cash receipts and cash payments for September:                           Cash Deposits   Cash Payments     Date Amount   Check# Amount     Sep 2 $8,359   361 $3,268     Sep 4 11,250   362 7,140     Sep 6 4,371   363 4,257     Sep 12 5,260   364 3,525     Sep 15 12,118   365 4,160     Sep 18 7,493   366 1,789     Sep 22 5,395   367 6,285     Sep 27 21,478   368 3,365     Sep 30 12,884   369 12,225           370 10,894           371 6,357           372 1,410           373 2,538           374 11,886           375 7,482           376 9,352                                 Continued …                           Part 4 continued             On October 3, Nelson received the following bank statement for September 30:                           Second Bank     Bank Statement for September 30, 2021                   Beginning Balance, September 1, 2021       $33,399                   Deposits and other credits:             Sep 3     8,359       Sep 5     11,250       Sep 5   Note 5,000       Sep 7     4,371       Sep 13     5,260       Sep 16     12,118       Sep 19     7,493       Sep 23     5,395       Sep 28     21,478       Sep 29   ACH 6,350       Sep 30   ACH 3,250 90,324                   Checks and other debits:               Check#           Sep 1 356   1,240       Sep 1 357   775       Sep 2 359   3,280       Sep 4 361   3,268       Sep 4 362   7,410       Sep 6 363   4,257       Sep 8 364   3,525       Sep 9 365   4,160       Sep 14 366   1,789       Sep 15 367   6,285       Sep 15 369   12,225       Sep 18 370   10,894       Sep 21 371   6,357       Sep 22   NSF 1,100       Sep 23 373   2,538       Sep 28 376   9,352       Sep 29   ACH 350       Sep 30   SC 240 77,030                   Ending Balance, September 30, 2021       46,693                   Additional information:             a. The Bank Collection on September 5 was for a Note Receivable.             b. The ACH received on Septmber 29 was from a customer on account.             c. The ACH received on September 30 was for rental income.             d. The NSF check related to a customer deposit on September 19.             e. Check number 362 was incorrectly entered on the books by the             accounts payable clerk.             f. The ACH payment on September 29 was for the telephone bill.                           Required                           1. Prepare a bank reconciliation for September 30, 2021 on the following page.             2. Journalize the necessary entries in the attached general journal.

Bank reconciliation and entries                           The following information was available to reconcile Nelson Company's book cash             balance with its bank statement as of September 30, 2021:                           The September 30 cash balance according to the accounting records was $21,870.                           Oustanding checks from August's bank reconciliation:             Check # 356   $1,240         Check # 357   775         Check # 359   3,280         Check # 360   924                       Below is a record of the cash receipts and cash payments for September:                           Cash Deposits   Cash Payments     Date Amount   Check# Amount     Sep 2 $8,359   361 $3,268     Sep 4 11,250   362 7,140     Sep 6 4,371   363 4,257     Sep 12 5,260   364 3,525     Sep 15 12,118   365 4,160     Sep 18 7,493   366 1,789     Sep 22 5,395   367 6,285     Sep 27 21,478   368 3,365     Sep 30 12,884   369 12,225           370 10,894           371 6,357           372 1,410           373 2,538           374 11,886           375 7,482           376 9,352                                 Continued …                           Part 4 continued             On October 3, Nelson received the following bank statement for September 30:                           Second Bank     Bank Statement for September 30, 2021                   Beginning Balance, September 1, 2021       $33,399                   Deposits and other credits:             Sep 3     8,359       Sep 5     11,250       Sep 5   Note 5,000       Sep 7     4,371       Sep 13     5,260       Sep 16     12,118       Sep 19     7,493       Sep 23     5,395       Sep 28     21,478       Sep 29   ACH 6,350       Sep 30   ACH 3,250 90,324                   Checks and other debits:               Check#           Sep 1 356   1,240       Sep 1 357   775       Sep 2 359   3,280       Sep 4 361   3,268       Sep 4 362   7,410       Sep 6 363   4,257       Sep 8 364   3,525       Sep 9 365   4,160       Sep 14 366   1,789       Sep 15 367   6,285       Sep 15 369   12,225       Sep 18 370   10,894       Sep 21 371   6,357       Sep 22   NSF 1,100       Sep 23 373   2,538       Sep 28 376   9,352       Sep 29   ACH 350       Sep 30   SC 240 77,030                   Ending Balance, September 30, 2021       46,693                   Additional information:             a. The Bank Collection on September 5 was for a Note Receivable.             b. The ACH received on Septmber 29 was from a customer on account.             c. The ACH received on September 30 was for rental income.             d. The NSF check related to a customer deposit on September 19.             e. Check number 362 was incorrectly entered on the books by the             accounts payable clerk.             f. The ACH payment on September 29 was for the telephone bill.                           Required                           1. Prepare a bank reconciliation for September 30, 2021 on the following page.             2. Journalize the necessary entries in the attached general journal.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.5.1C
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Bank reconciliation and entries            
             
The following information was available to reconcile Nelson Company's book cash            
balance with its bank statement as of September 30, 2021:            
             
The September 30 cash balance according to the accounting records was $21,870.            
             
Oustanding checks from August's bank reconciliation:            
Check # 356   $1,240        
Check # 357   775        
Check # 359   3,280        
Check # 360   924        
             
Below is a record of the cash receipts and cash payments for September:            
             
Cash Deposits   Cash Payments    
Date Amount   Check# Amount    
Sep 2 $8,359   361 $3,268    
Sep 4 11,250   362 7,140    
Sep 6 4,371   363 4,257    
Sep 12 5,260   364 3,525    
Sep 15 12,118   365 4,160    
Sep 18 7,493   366 1,789    
Sep 22 5,395   367 6,285    
Sep 27 21,478   368 3,365    
Sep 30 12,884   369 12,225    
      370 10,894    
      371 6,357    
      372 1,410    
      373 2,538    
      374 11,886    
      375 7,482    
      376 9,352    
             
             
Continued …            
             
Part 4 continued            
On October 3, Nelson received the following bank statement for September 30:            
             
Second Bank    
Bank Statement for September 30, 2021    
             
Beginning Balance, September 1, 2021       $33,399    
             
Deposits and other credits:            
Sep 3     8,359      
Sep 5     11,250      
Sep 5   Note 5,000      
Sep 7     4,371      
Sep 13     5,260      
Sep 16     12,118      
Sep 19     7,493      
Sep 23     5,395      
Sep 28     21,478      
Sep 29   ACH 6,350      
Sep 30   ACH 3,250 90,324    
             
Checks and other debits:            
  Check#          
Sep 1 356   1,240      
Sep 1 357   775      
Sep 2 359   3,280      
Sep 4 361   3,268      
Sep 4 362   7,410      
Sep 6 363   4,257      
Sep 8 364   3,525      
Sep 9 365   4,160      
Sep 14 366   1,789      
Sep 15 367   6,285      
Sep 15 369   12,225      
Sep 18 370   10,894      
Sep 21 371   6,357      
Sep 22   NSF 1,100      
Sep 23 373   2,538      
Sep 28 376   9,352      
Sep 29   ACH 350      
Sep 30   SC 240 77,030    
             
Ending Balance, September 30, 2021       46,693    
             
Additional information:            
a. The Bank Collection on September 5 was for a Note Receivable.            
b. The ACH received on Septmber 29 was from a customer on account.            
c. The ACH received on September 30 was for rental income.            
d. The NSF check related to a customer deposit on September 19.            
e. Check number 362 was incorrectly entered on the books by the            
accounts payable clerk.            
f. The ACH payment on September 29 was for the telephone bill.            
             
Required            
             
1. Prepare a bank reconciliation for September 30, 2021 on the following page.            
2. Journalize the necessary entries in the attached general journal.            

 

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