Question - Bank Reconciliation and Adjusting Entries
Presented below is information related to Wizards Inc.
Balance per books at August 31, $19,580.35; receipts $185,680.86; disbursements $191,600.09. Balance per bank statement September 30, $17,680.63.
The following checks were outstanding at September 30.
5641 $1,856.21
5642 953.40
5644 2,681.27
5645 300.00
Included with the September bank statement and not recorded by the company were a bank debit memo for $31.00 covering bank charges for the month, a debit memo for $859.46 for a customer's check returned and marked NSF, and a credit memo for $900 representing bond interest collected by the bank in the name of Wizards Inc. Cash on hand at September 30 recorded and awaiting deposit amounted to $1,680.91.
Instructions
(a) Prepare a bank reconciliation (to the correct balance) at September 30, for Wizards Inc. from the information above.
(b) Prepare any journal entries required to adjust the cash account at September 30.