HANDOUT 5–1 SOLUTION
BANK RECONCILIATION
Information from the records and bank statement and of Matrix, Inc. as of July 31, 2016 is set forth below
Cash balance per bank, July 31, 2016
$9,610
Cash balance per general ledger, July 31, 2016
7,430
Outstanding checks at July 31, 2016
2,417
Check mailed to the bank for deposit that had not reached the bank by July 31, 2016
500
NSF check (from a customer for a payment on account) returned by bank
281
July interest earned per bank statement
30
Check no. 781 for supplies expense cleared the bank for $240, but was erroneously
recorded in the books at $268
Deposit by Acme Company erroneously credited by the bank to our account
486
Part A
Prepare the bank reconciliation for Matrix, Inc.
Matrix, Inc.
Bank Reconciliation
July 31, 2016
Updates to Bank Statement
Updates to Company’s Books
July 31 cash balance
$9,610
July 31 cash balance
$7,430
Additions:
Additions:
Deposit in transit
500
Interest earned
30
Deductions:
Recording error check 781
28
Bank error
(486)
Deductions:
Outstanding checks
(2,417)
NSF check
(281)
Up–to-date cash balance
$7,207
Up–to-date cash balance
$7,207
HANDOUT 5–1 SOLUTION, continued
Part B
Prepare any journal entries that should be made as a result of the bank reconciliation.
Date
Accounts
Debit
Credit
July 31
Cash
30
Interest Revenue
30
July 31
Cash
28
Supplies Expense
28
July 31
Accounts Receivable
281
Cash
281
HANDOUT 5–2
BANK RECONCILIATION
Prepare the bank reconciliation for Donna’s Day Care using the following information:
Cash balance per bank, June 30, 2016
$5,586
Cash balance per general ledger, June 30, 2016
5,055
Outstanding checks, June 30, 2016
1,816
Deposit in transit, June30, 2016
750
NSF check (from a customer for a payment on account) returned by bank
450
June interest earned per bank statement
15
Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was
erroneously recorded in the books at $800
Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank
statement as $6,200
Part A
Prepare the bank reconciliation for Donna’s Day Care.
HANDOUT 5–2, continued
Part B
Prepare any journal entries that should be made as a result of the bank reconciliation.
Date
Accounts
Debit
Credit
HANDOUT 5–2 SOLUTION
BANK RECONCILIATION
Prepare the bank reconciliation for Donna’s Day Care using the following information:
Cash balance per bank, June 30, 2016
$5,586
Cash balance per general ledger, June 30, 2016
5,055
Outstanding checks, June 30, 2016
1,816
Deposit in transit, June30, 2016
750
NSF check (from a customer for a payment on account) returned by bank
450
June interest earned per bank statement
15
Check no. 800 in payment of accounts payable cleared the bank for $1,100, but was
erroneously recorded in the books at $800
Deposit in amount of $6,000, recorded properly on books, erroneously credited on bank
statement as $6,200
Part A
Prepare the bank reconciliation for Donna’s Day Care.
Donna’s Day Care
Bank Reconciliation
June 30, 2016
Updates to Bank Statement
Updates to Company’s Books
June 30 cash balance
$5,586
June 30 cash balance
$5,055
Additions:
Additions:
Deposit in transit
750
Interest earned
15
Deductions:
Deductions:
Bank error
(200)
Recording error check 800
(300)
Outstanding checks
(1,816)
NSF check
(450)
Up–to-date cash balance
$4,320
Up–to-date cash balance
$4,320
HANDOUT 5–2 SOLUTION, continued
Part B
Prepare any journal entries that should be made as a result of the bank reconciliation.
Date
Accounts
Debit
Credit
June 30
Cash
15
Interest Revenue
15
June 30
Accounts Payable
300
Cash
300
June 30
Accounts Receivable
450
Cash
450