Miller Corporation’s December 31, 2019, bank statement showed a $2,054.25 balance. On this date, Miller’s Cash account reflected a $326.60 overdraft. In reconciling these amounts, the following information is discovered: 1.Cash on hand for undeposited sales receipts, December 31, $133.25.2.Customer NSF check returned with bank statement, $424.20.3.Cash sales of $627.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.4.Note receivable of $2,300.00 and interest of $23 collected by the bank and not recorded on the books.5.Deposit in transit December 31, $340.00.6.A customer check for $380.30 in payment of its account was recorded on the books at $830.30.7.Outstanding checks, $2,032.55. Includes a duplicate check of $65.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount. Required:1.Prepare a December 31 bank reconciliation for Miller.2.Prepare any journal entries necessary by Miller to record the information from Requirement 1.

Requirement a: Prepare a bank reconciliation.

Answered: 1. Prepare a December 31 bank…

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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Miller Corporation’s December 31, 2019, bank statement showed a $2,054.25 balance. On this date, Miller’s Cash account reflected a $326.60 overdraft. In reconciling these amounts, the following information is discovered:


1.	Cash on hand for undeposited sales receipts, December 31, $133.25.
2.	Customer NSF check returned with bank statement, $424.20.
3.	Cash sales of $627.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.
4.	Note receivable of $2,300.00 and interest of $23 collected by the bank and not recorded on the books.
5.	Deposit in transit December 31, $340.00.
6.	A customer check for $380.30 in payment of its account was recorded on the books at $830.30.
7.	Outstanding checks, $2,032.55. Includes a duplicate check of $65.85 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount.

	Required:
1.	Prepare a December 31 bank reconciliation for Miller.
2.	Prepare any journal entries necessary by Miller to record the information from Requirement 1.

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