Ex. 180
Gordon Company is unable to reconcile the bank balance at January 31. Gordon’s reconciliation is as follows.
Cash balance per bank$5,340
Add: NSF check1,040
Less: Bank service charge 35
Adjusted balance per bank$6,345
Cash balance per books$5,815
Less: Deposits in transit850
Add: Outstanding checks 1,450
Adjusted balance per books$6,415
Instructions
(a)Prepare a correct bank reconciliation.
(b)Journalize the entries required by the reconciliation.
Ex. 181
On April 30, the bank reconciliation of Baxter Company shows three outstanding checks: no. 354, $650, no. 355, $820, and no. 357, $615. The May bank statement and the May cash payments journal show the following.
Bank Statement Cash Payments Journal
Checks Paid Checks Issued
Date Check No. Amount Date Check No. Amount
5/43546505/2358159
5/23558205/5359275
5/173581595/10360890
5/123592755/15361800
5/203608905/22362750
5/293634805/24363480
5/303627505/29364840
Ex. 181(Cont.)
Instructions
Using step 2 in the reconciliation procedure, list the outstanding checks at May 31.