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Green & White Corporation Bank Reconciliation

See the attached file.

The records of Green & White Corporation show the following bank statement information for October:

a. Balance per Bank Statement, October 31, 2012, $62,000
b. The bank account balance in the general ledger (Books) on October 31, 2012, $57,035
c. Service charge indicated on the bank statement as a debit memorandum ** for October, $25
d. Note receivable matured and cash directly deposited by Green & White customer into the
Green & White account. The total of $6,400 included $400 interest earned on the note.
e. October check returned from a customer marked by the bank as NSF (check was for accounts
receivable collection) amounted to $2,500.
f. Checks received from customers as payments on their accounts receivable were erroneously
recorded in the books of Green & White as $9,960, on October 10. The bank correctly
showed the deposit of these checks as $9,690.
g. Outstanding checks totaled $12,000.
h. Deposits in transit totaled $7,700.
i. Green & White Corporation rents space to the bank. The bank directly deposits the amount
each month. The bank issued a credit memorandum ** indicating that they had put this
month's rent, of $5,000 into Green & White's account.
j. Interest earned on the account, as reflected on the bank statement, was $60.
h. The bank erroneously withdrew a check written by Green & Wite, Inc from Green & White's
account in the amount of $8,000. Green & Wite does no business with Green & White.
Prepare a bank reconciliation and the required entries to correct the book balance as of 10/31/12.

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Bank Reconciliation
The records of Green & White Corporation show the following bank statement information for October:

a. Balance per Bank Statement, October 31, 2012, $62,000 starting point
b. The bank account balance in the general ledger (Books) on October 31, 2012, $57,035 starting point
c. Service charge indicated on the bank statement as a debit memorandum ** for October, $25 recorded on bank, but not books - deduct
d. Note receivable matured and cash directly deposited by Green & White customer into the
Green & White account. The total of $6,400 included $400 interest earned on the note. Recorded by bank, but not books - add
e. October check returned from a customer marked by the bank as NSF (check was for accounts
receivable collection) amounted to $2,500. Recorded by banks, not books - deduct
f. Checks received from customers as payments on their accounts receivable were erroneously
...

Solution Summary

Green and White Corporation bank reconciliations are examined in the solution.

$2.19