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Question 1
The following is a bank reconciliation for Usman company as of August 31.

DescriptionAmountTotal
Balance per bank statement, August 317,018
Add: Deposit in transit5,839Single line
Single line12,857
Less: Outstanding checks6,122Single line
Adjusted balance, August 31Single line6,735Double line
Balance per ledger, August 316,796
Add: Error correction*217Single line
Single line7,013
Less: NSF check248278Single line
Service and collection charges30Single lineSingle line
Adjusted balance, August 31Single line6,735Double line

 

* misrecorded payment on account

Prepare the journal entry or entries needed to adjust or correct the Cash account.

Journal
DateDescriptionDebitCredit
August 31
August 31
August 31
August 31
August 31



Question 2

Review the results from preparing Let's Be Safe Security Systems bank reconciliation.

Bank
DescriptionAmount
Balance (ending)5,716
Subcategory,ADD:
Deposits in transit334Single line
Single line6,050
Subcategory,SUBTRACT:
Outstanding checks1,720Single line
Adjusted BalanceSingle line4,330Double line

 

CHECKBOOK (COMPANY)
DescriptionAmount
Balance (ending)3,706
Subcategory,ADD:
Bank Collections637
Interest Revenue27
Subcategory,SUBTRACT:
Service Charge40Single line
Adjusted BalanceSingle line4,330Double line

 

Journalize the company’s transactions that arise from the bank reconciliation.

Journal
DateDescriptionDebitCredit
December 31
December 31
December 31
December 31
December 31