SavRocca, accountant for Shine King Cleaning is attempting to reconcile the monthly bank account. SavRocca has the following information:
1) The cash ledger balance at November 30 is $73,100
2) The balance according to the bank statement is $73,723
3) Deposits in transit totaled $900
4) Outstanding checks Check #104 - $500 & Check #107 - $600
5) Bank service charges were $18
6) The bank collected an EFT collection of $600 for Shine King Cleaning on account from Pierre's Wig Stand
7) Earned interest at the bank $16
8) Shine King Cleaning made EFT payments Check Art Supplies $30 & Calpine Energy $145.
1. Prepare bank reconciliation at November 30
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Bank Balance:
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$73,723
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Book Balance:
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$73,100
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Add: Deposit in transit
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900
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Deduct: Bank Service Charge
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-18
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Deduct: Checks Paid
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-500
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Add: Funds Received
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600
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Deduct: Checks Paid
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-600
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Add: Interest Earned
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16
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Deduct: Payment Art Supplies
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-30
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Deduct: Payments to Calpine Energy
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-145
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Adjusted/Corrected Balance per Bank
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$73,523
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Adjusted/Corrected Balance per Book
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$73,523
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2) Prepare the necessary journal entries