a sample problem. the cash in bank account for j. b. lindsay co. at may 31 of the current year...
TRANSCRIPT
![Page 1: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/1.jpg)
Bank Reconciliationsa sample problem
![Page 2: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/2.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 2
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 3: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/3.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 3
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 4: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/4.jpg)
4
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 5: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/5.jpg)
5
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 6: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/6.jpg)
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Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 7: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/7.jpg)
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Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 8: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/8.jpg)
8
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 9: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/9.jpg)
9
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 10: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/10.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 10
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 11: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/11.jpg)
11
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 12: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/12.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 12
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 13: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/13.jpg)
13
Beginning Balance 14,691.80Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 14: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/14.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 14
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 15: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/15.jpg)
15
Beginning Balance 19,913.90 Beginning Balance 14,691.80Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 16: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/16.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 16
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 17: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/17.jpg)
17
Beginning Balance 19,913.90 Beginning Balance 14,691.80
(a) Outstanding checks 7,070.10
Bank’s Records Company’s Records
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 18: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/18.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 18
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 19: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/19.jpg)
19
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20
Beginning Balance 14,691.80
(a) Outstanding checks 7,070.10
Bank’s Records Company’s Records
![Page 20: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/20.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 20
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of
the note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 21: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/21.jpg)
21
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20
Beginning Balance 14,691.80(c) Note and Interest 3,120.00
(a) Outstanding checks 7,070.10
Bank’s Records Company’s Records
![Page 22: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/22.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 22
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 23: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/23.jpg)
23
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20
Beginning Balance 14,691.80(c) Note and Interest 3,120.00
(a) Outstanding checks 7,070.10 (d) Printed checks 40.00
Bank’s Records Company’s Records
![Page 24: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/24.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 24
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The
bank credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 25: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/25.jpg)
25
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20
Beginning Balance 14,691.80(c) Note and Interest 3,120.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00
Bank’s Records Company’s Records
![Page 26: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/26.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 26
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 27: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/27.jpg)
27
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00
Bank’s Records Company’s Records
![Page 28: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/28.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 28
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 29: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/29.jpg)
29
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00
Bank’s Records Company’s Records
![Page 30: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/30.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 30
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10.b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 31: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/31.jpg)
31
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 32: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/32.jpg)
32
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 33: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/33.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 33
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 34: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/34.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
34
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 35: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/35.jpg)
35
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 36: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/36.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
36
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 37: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/37.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
37
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 38: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/38.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
38
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 39: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/39.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
39
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 40: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/40.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
40
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 41: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/41.jpg)
41
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 42: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/42.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
42
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 43: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/43.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
43
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.007,100.10
Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 44: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/44.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
44
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.10Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 45: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/45.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
45
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.10Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 46: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/46.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
46
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 47: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/47.jpg)
47
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 48: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/48.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
48
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 49: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/49.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
49
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 50: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/50.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
50
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 51: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/51.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
51
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 52: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/52.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
52
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 53: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/53.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
53
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 54: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/54.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
54
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 55: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/55.jpg)
55
Beginning Balance 19,913.90(b) Deposits in transit 4,945.20(g) Error in check 18.00
Beginning Balance 14,691.80(c) Note and Interest 3,120.00(f) Error in check 27.00
(a) Outstanding checks 7,070.10(e) Error in deposit 30.00
(d) Printed checks 40.00(h) Bank service charges 21.80
Bank’s Records Company’s Records
![Page 56: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/56.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
56
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 57: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/57.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
57
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 58: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/58.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
58
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 59: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/59.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
59
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 60: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/60.jpg)
60
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 61: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/61.jpg)
61
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 62: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/62.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved. 62
The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts journal and the cash payments journal for May had been posted. The bank statement indicated a balance of $19,913.90 on May 31. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:a) Checks outstanding totaled $7,070.10b) A deposit of $4,945.20, representing receipts of May 31, had been made too late to appear
on the bank statement.c) The bank had collected $3,120 on an interest-bearing note left for collection. The face of the
note was $3,000.d) The bank statement included a debit memo for printing costs for additional checks of $40.e) The cash receipts journal and a deposit slip correctly indicated cash sales of $522. The bank
credited the company’s account for $552.f) A check for $69 returned with the statement had been recorded erroneously in the cash
payments journal as $96. The check was for the payment for the purchase of office supplies on account.
g) A check drawn for $24 had been erroneously charged by the bank as $42.h) Bank service charges for May amounted to $21.80 Instructions:1. Prepare a bank reconciliation.2. Record the necessary entries in general journal form.
Bank Reconciliation Sample Problem
![Page 63: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/63.jpg)
63
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 64: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/64.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
64
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 65: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/65.jpg)
65
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 66: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/66.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
66
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 67: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/67.jpg)
67
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00
![Page 68: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/68.jpg)
68
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00
![Page 69: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/69.jpg)
69
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Cash 3,147.00 Notes Receivable 3,000.00 Interest Revenue 120.00 Accounts Payable 27.00
![Page 70: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/70.jpg)
© Copyright 2011 by M. Ray Gregg. All rights reserved.
70
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
![Page 71: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/71.jpg)
71
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 72: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/72.jpg)
72
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Miscellaneous Expense 61.80 Cash 61.80
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 73: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/73.jpg)
73
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Miscellaneous Expense 61.80 Cash 61.80
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 74: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/74.jpg)
74
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
Date Account Title Ref. Debit Credit
5/31 Miscellaneous Expense 61.80 Cash 61.80
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 75: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/75.jpg)
75
Balance according to bank 19,913.90Add: (b) Deposit in transit 4,945.20
(g) Bank error in recording check 18.00 4,963.20Sub-total 24,877.10Deduct: (a) Outstanding checks 7,070.10
(e) Error in deposit 30.00 7,100.00Adjusted Balance 17,777.00
Balance according to depositor's records 14,691.80Add: (c) Note Receivable 3,000.00
(c) Interest Revenue 120.00(f) Error in recording check 27.00 3,147.00
Sub-total 17,838.80Deduct: (d) Printing of company checks 40.00
(h) Bank service charges 21.80 61.80Adjusted Balance 17,777.00
J. B. Lindsay CompanyBank Reconciliation
May 31, 201x
© Copyright 2011 by M. Ray Gregg. All rights reserved.
![Page 76: A sample problem. The cash in bank account for J. B. Lindsay Co. at May 31 of the current year indicated a balance of $14,691.80 after both the cash receipts](https://reader031.vdocument.in/reader031/viewer/2022013011/5517f6ce550346d5568b4ddf/html5/thumbnails/76.jpg)
Bank Reconciliationsa sample problem
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77© Copyright 2011 by M. Ray Gregg. All rights reserved.