problem: Silver's Spa Supplies Co. collected its bank statement for the month of January, & his assistant controller, Rebbie received the information needed to complete bank reconciliation. Here is the data required to complete the bank reconciliation.
Use the following information to complete a bank reconciliation for Silver's Spa Supplies.
The balance on the bank statement at 1/31 is $44,750.
The book balance is $49,572 on 1/31.
(1) Deposits in transit total $14,800.
(2) The bank collected EFT payments from Silver's credit customers (customers paying their balances online), totaling $6,900.
(3) Silver's Spa Supplies accounting staff made a mistake when recording a deposit. The accounting records showed a deposit of $26,400. The bank statement correctly showed the deposit for $24,600. The deposit was for Cash Sales.
(4) Silver's Spa Supplies has $12,100 in outstanding checks.
(5) The bank paid interest on the account, totaling $138.
(6) A check for $7,250 from Silver's Spa was payment for her Accounts Receivable balance. When it was deposited, the check bounced. The bank statement showed the check as NSF. The bank also charged a fee of $35 for processing the NSF check.
(7) The bank statement showed the bank's monthly service charge of 75 dollar.
Create bank reconciliation. Use a format like the one shown on page 370, Illustration 8-12.
For the Conference, you should show the adjusted cash balance, and show how you got it.
Create journal entries for the items that should be journalized on Silver's books. HINT: There are five (5) journal entries.