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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.

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. 

Requirement 1st;

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.

Requirement 2nd;

Create journal entries for the items that should be journalized on Silver's books. HINT: There are five (5) journal entries.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920068

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