Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.
On October 5, Sam Yao, Attorney at Law, received his September bank statement from First Security National Bank. Enclosed with the bank statement was a debit memorandum for $112 that covered an NSF check issued by Julia Anderson, a credit customer. The firm's checkbook contained the following information about deposits made and checks issued during September. The balance of the Cash account and the checkbooks on September 30 was $16,622.
|
Date
|
Transactions
|
|
Sept. 1
|
Balance
|
$13,000
|
|
|
1
|
Check 124
|
200
|
|
|
3
|
Check 125
|
20
|
|
|
3
|
Deposit
|
1,000
|
|
|
6
|
Check 126
|
450
|
|
|
10
|
Deposit
|
820
|
|
|
11
|
Check 127
|
400
|
|
|
15
|
Check 128
|
150
|
|
|
21
|
Check 129
|
120
|
|
|
22
|
Deposit
|
1,460
|
|
|
25
|
Check 130
|
8
|
|
|
25
|
Check 131
|
40
|
|
|
27
|
Check 132
|
70
|
|
|
28
|
Deposit
|
1,800
|
|
|
FIRST SECURITY NATIONAL BANK
|
|
Sam Yao, Attorney-at-Law
2222 Sam Houston Lane
Columbus, OH 44106
|
Account No. 11-4568.03
Period Ending Sept. 30
|
|
Checks
|
Deposits
|
Date
|
Balance
|
|
Beginning Balance
|
August 31
|
13,000.00
|
|
|
1,000.00+
|
September 3
|
14,000.00
|
|
200.00-
|
|
|
September 6
|
13,800.00
|
|
400.00-
|
20.00-
|
820.00+
|
September 11
|
14,200.00
|
|
450.00-
|
|
|
September 15
|
13,750.00
|
|
120.00-
|
|
|
September 19
|
13,630.00
|
|
|
1,460.00+
|
September 23
|
15,090.00
|
|
40.00-
|
8.00-
|
|
September 25
|
15,042.00
|
|
7.50- SC
|
112.00- DM
|
|
September 28
|
14,922.50
|
|
|
|
|
|
|
Instructions:
(a) Prepare a bank reconciliation statement for the firm as of September 30.
(b) Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries October 5.(c) Analyze: How many checks were paid (cleared the bank) according to the September 30 bank statement?