1. Explanation Bank reconciliation: Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom agree. Bank reconciliation is the statement prepared by company to remove the differences and disagreement between cash balance per bank and cash balance per books. Prepare the bank reconciliation for N Motel, as on July 31, 20-- . N Motel Bank Reconciliation July 31, 20-- Bank statement balance $1,576.06 Add: Deposit in transit 630.00 2,206.06 Deduct: Outstanding checks: Number: 1631 $118.20 Number: 1632 78.20 Number: 1633 178.36 374.76 Adjusted bank statement balance $1,831.30 Ledger balance of cash $1,909.30 Add: Deduct: NSF check from customer $37.00 Bank service and collection charges 23.00 Error in recording Check Number: 1617 18.00 78.00 Adjusted ledger balance of cash $1,831.30 Table (1) Working Notes: Calculate book error in recording Check Number: 1617... 2. To determine Prepare the adjusting journal entries that arise due to bank reconciliation. 3. To determine Prepare the bank form to compute the adjusted bank balance.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN: 9781337280570

Author: Scott, Cathy J.

Publisher: South-Western College Pub

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

Chapter 6, Problem 4PB

To determine

Prepare the bank reconciliation for N Motel, as on July 31, 20--.

To determine

Prepare the adjusting journal entries that arise due to bank reconciliation.

To determine

Prepare the bank form to compute the adjusted bank balance.

Expert Solution & Answer

Chapter 6 Solutions

College Accounting (Book Only): A Career Approach

Ch. 6 - Prob. 1QY Ch. 6 - Prob. 2QY Ch. 6 - Which of the following does not explain the...Ch. 6 - What is the journal entry to record an NSF check,...Ch. 6 - Prob. 5QY Ch. 6 - Prob. 6QY Ch. 6 - Prob. 7QY Ch. 6 - Prob. 8QY Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ

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