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    Bank Reconciliation and Adjusting Entries

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    I need help with this problem. Please put in excel. Thank you.

    Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

    June 30 Bank Reconciliation

    Balance per bank $7,000
    Add: Deposits in transit 1,540
    Deduct: Outstanding checks (2,000)
    Balance per books $6540

    Month of July Results

    Balance July 31 Per Bank - $8650 Per Books - 9250

    July Deposits Per Bank - 4500 Per Books - 5810

    July checks Per Bank - 4000 Per Books - 3100

    July note collected (not included in July deposits) Per Bank - 1500 Per Books - (--)

    July Bank service charge Per Bank - 15 Per Books - (--)

    July NSF check from a customer, return by the bank Per Bank - 335 Per Books - (--)
    (recorded by bank as a charge)

    a. Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
    b. Prepare the general journal entry or entries to correct the Cash account

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    Solution Summary

    The solution explains how to prepare the bank reconciliation and the related journal entries