Bank Reconciliations

Report
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 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.
© 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 $7,070.10
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
3
© Copyright 2011 by M. Ray Gregg. All rights reserved.
4
© Copyright 2011 by M. Ray Gregg. All rights reserved.
5
© Copyright 2011 by M. Ray Gregg. All rights reserved.
6
© Copyright 2011 by M. Ray Gregg. All rights reserved.
7
© Copyright 2011 by M. Ray Gregg. All rights reserved.
8
© Copyright 2011 by M. Ray Gregg. All rights reserved.
9
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
10
© Copyright 2011 by M. Ray Gregg. All rights reserved.
11
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
12
Beginning Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
14,691.80
13
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
14
Beginning Balance
19,913.90
Beginning Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
14,691.80
15
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
16
Beginning Balance
(a) Outstanding checks
19,913.90
Beginning Balance
14,691.80
7,070.10
© Copyright 2011 by M. Ray Gregg. All rights reserved.
17
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
18
Beginning Balance
(b) Deposits in transit
19,913.90
4,945.20
(a) Outstanding checks
7,070.10
Beginning Balance
14,691.80
19
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
20
Beginning Balance
(b) Deposits in transit
19,913.90
4,945.20
(a) Outstanding checks
7,070.10
Beginning Balance
(c) Note and Interest
14,691.80
3,120.00
21
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
22
Beginning Balance
(b) Deposits in transit
19,913.90
4,945.20
(a) Outstanding checks
7,070.10
Beginning Balance
(c) Note and Interest
(d) Printed checks
14,691.80
3,120.00
40.00
23
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
24
Beginning Balance
(b) Deposits in transit
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(d) Printed checks
14,691.80
3,120.00
40.00
25
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
26
Beginning Balance
(b) Deposits in transit
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
14,691.80
3,120.00
27.00
40.00
27
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
28
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
14,691.80
3,120.00
27.00
40.00
29
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
30
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
31
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
32
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
33
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
34
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
35
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
36
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
37
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
38
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
39
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
40
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
41
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
42
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
19,913.90
4,963.20
24,877.10
Adjusted Balance
7,100.10
17,777.00
Balance according to depositor's records
14,691.80
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
43
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
19,913.90
4,963.20
24,877.10
7,100.10
17,777.00
14,691.80
3,000.00
44
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
19,913.90
4,963.20
24,877.10
7,100.10
17,777.00
14,691.80
3,000.00
45
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
46
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
47
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
48
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
49
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
50
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
51
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
52
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
53
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
54
Beginning Balance
(b) Deposits in transit
(g) Error in check
(a) Outstanding checks
(e) Error in deposit
19,913.90
4,945.20
18.00
7,070.10
30.00
Beginning Balance
(c) Note and Interest
(f) Error in check
(d) Printed checks
(h) Bank service charges
14,691.80
3,120.00
27.00
40.00
21.80
55
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
56
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
57
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
58
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
59
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
60
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
61
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.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
62
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
63
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
64
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
65
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
66
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31 Cash
Notes Receivable
Interest Revenue
Accounts Payable
Ref.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
3,147.00
3,000.00
120.00
27.00
67
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31 Cash
Notes Receivable
Interest Revenue
Accounts Payable
Ref.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
3,147.00
3,000.00
120.00
27.00
68
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31 Cash
Notes Receivable
Interest Revenue
Accounts Payable
Ref.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
3,147.00
3,000.00
120.00
27.00
69
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All
rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
70
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
71
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31
Miscellaneous Expense
Cash
14,691.80
3,000.00
120.00
27.00
Ref.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
61.80
61.80
72
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31
Miscellaneous Expense
Cash
14,691.80
3,000.00
120.00
27.00
Ref.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
61.80
61.80
73
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
Date
Account Title
5/31
Miscellaneous Expense
Cash
14,691.80
3,000.00
120.00
27.00
Ref.
© Copyright 2011 by M. Ray Gregg. All rights reserved.
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
Debit
Credit
61.80
61.80
74
J. B. Lindsay Company
Bank Reconciliation
May 31, 201x
Balance according to bank
Add:
(b) Deposit in transit
4,945.20
(g) Bank error in recording check
18.00
Sub-total
Deduct: (a) Outstanding checks
7,070.10
(e) Error in deposit
30.00
Adjusted Balance
Balance according to depositor's records
Add:
(c) Note Receivable
(c) Interest Revenue
(f) Error in recording check
Sub-total
Deduct: (d) Printing of company checks
(h) Bank service charges
Adjusted Balance
© Copyright 2011 by M. Ray Gregg. All rights reserved.
19,913.90
4,963.20
24,877.10
7,100.00
17,777.00
14,691.80
3,000.00
120.00
27.00
40.00
21.80
3,147.00
17,838.80
61.80
17,777.00
75
a sample problem
© Copyright 2011 by M. Ray Gregg. All rights reserved.
77

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