The Cash account ofReeseCorporation had a balance of$3,540atOctober31,2018.Included were outstanding checks totaling$1,800and anOctober31deposit of$300that did not appear on the bank statement. The bank statement, which came fromTurnstoneState Bank, listed anOctober31balance of$5,570.Included in the bank balance was anOctober30 collection of$600on account from a customer who pays the bank directly. The bank statement also showed a$30service charge,$10of interest revenue thatReeseearned on its bank balance, and an NSF check for$50.ReeseCorporation's bank reconciliation follows. Reese Corp. Bank Reconciliation October 31, 2018 Bank Books Balance, October 31 $5,570Balance, October 31 $3,540 Add: Add: Deposit in transit 300Bank collection 600 5,870Interest revenue 10 4,150 Less: Less: Outstanding checks (1,800)Service charge(30) NSF check(50)(80) Adjusted bank balance $4,070Adjusted book balance $4,070 Make the company's journal entries for transactions that arise from the bank reconciliation. Date each transactionOctober31,2018,and include an explanation with each entry.. Make the company's journal entries for transactions that arise from the bank reconciliation. Date each transactionOctober31,2018,and include an explanation with each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Record the bank collection. Journal EntryDate Accounts and ExplanationsDebitCredit2018Cash Oct31Cash Record the interest revenue. Journal EntryDate Accounts and ExplanationsDebitCredit2018Cash Oct31Interest Revenue Record the bank service charge. Journal EntryDate Accounts and ExplanationsDebitCredit2018 Oct31 Record the NSF check returned by the bank. Journal EntryDate Accounts and ExplanationsDebitCredit2018 Oct31

Bank Reconciliation Statement is a statement that is prepared to reconcile the balance as per the…

Answered: Record the bank collection. Journal…

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 5E

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Question

The Cash account of

Reese

Corporation had a balance of

$3,540

October

31,

2018.

Included were outstanding checks totaling

$1,800

and an

October

deposit of

$300

that did not appear on the bank statement. The bank statement, which came from

Turnstone

State Bank, listed an

October

balance of

$5,570.

Included in the bank balance was an

October

30 collection of

$600

on account from a customer who pays the bank directly. The bank statement also showed a

$30

service charge,

$10

of interest revenue that

Reese

earned on its bank balance, and an NSF check for

$50.

Reese

Corporation's bank reconciliation follows.

	Reese Corp.
	Bank Reconciliation
	October 31, 2018

Bank	Books
Balance, October 31	$5,570	Balance, October 31		$3,540
Add:		Add:
Deposit in transit	300	Bank collection		600
	5,870	Interest revenue		10
				4,150
Less:		Less:
Outstanding checks	(1,800)	Service charge	(30)
		NSF check	(50)	(80)
Adjusted bank balance	$4,070	Adjusted book balance		$4,070

Make the company's journal entries for transactions that arise from the bank reconciliation. Date each transaction

October

31,

2018,

and include an explanation with each entry.

Make the company's journal entries for transactions that arise from the bank reconciliation. Date each transaction

October

31,

2018,

and include an explanation with each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Record the bank collection.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

2018

Cash

Oct

Cash

Record the interest revenue.

Journal Entry

Date

Accounts and Explanations

Debit

Credit

2018

Cash

Oct

Interest Revenue

Record the bank service charge.

Journal Entry
Date		Accounts and Explanations	Debit	Credit
2018
Oct	31

Record the NSF check returned by the bank.

Journal Entry
Date		Accounts and Explanations	Debit	Credit
2018
Oct	31

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