On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157. Notes The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement. A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.) The following checks were issued but have not yet been paid by the bank: Check 712, $ 102 Check 713, $ 117 Check 716, $ 230 Check 736, $ 569 Check 739, $ 70 Check 741, $ 112 A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records. Required: Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. Prepare a bank reconciliation statement for the firm as of August 31. DRY CREEK BED AND BREAKFAST Bank Reconciliation Statement August 31, 20X1 Balance on bank statement Additions: Deductions for outstanding checks: Total deductions Adjusted bank balance Balance in books Additions: Deductions: Adjusted book balance

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

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Question

On August 31, 20X1, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,209. The balance shown on the bank statement on the same date was $13,157.

Notes

The firms records indicate that a $1,370 deposit dated August 30 and a $693 deposit dated August 31 do not appear on the bank statement.
A service charge of $8 and a debit memorandum of $280 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
The following checks were issued but have not yet been paid by the bank:


Check 712,	$	102
Check 713,	$	117
Check 716,	$	230
Check 736,	$	569
Check 739,	$	70
Check 741,	$	112

A credit memorandum shows that the bank collected a $2,044 note receivable and interest of $55 for the firm. These amounts have not yet been entered in the firm’s records.

Required:

Prepare a bank reconciliation statement for the firm as of August 31.

Prepare a bank reconciliation statement for the firm as of August 31.

DRY CREEK BED AND BREAKFAST
Bank Reconciliation Statement
August 31, 20X1
Balance on bank statement
Additions:




Deductions for outstanding checks:







Total deductions
Adjusted bank balance

Balance in books
Additions:




Deductions:



Adjusted book balance

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