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    Green & White Corporation Bank Reconciliation

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    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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    Please refer to the attachment for the full solution.

    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