a. Checks outstanding: no. 122, $850; no. 130, $720 — Slacks com received bank statement from French indicating balance 200 Based check
Biology & Life SciencesGeneralWorked Solution
Slacks.com received a bank statement from French Bank indicating a balance of $8,200. Based on Slacks.com’s check stubs, the ending checkbook balance was $9,000. Your task is to prepare a bank reconciliation for Slacks.com as of July 31, 201X, from the following information (journalize as needed):
a. Checks outstanding: no. 122, $850; no. 130, $720.
b. Deposits in transit, $2,100.
c. Slacks.com forgot to record a $1,300 equipment purchase made with a debit card.
d. Bank service charges, $55.
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e. French bank collected a note for Slacks.com, $1,090, less a $5 collection fee.
SOLUTION
SLACKS.COM BANK RECONCILIATION AS OF JULY 31, 201X
BALANCE BANK
BALANCE BANK
BALANCE BANK
CHECKBOOK BALANCE
CHECKBOOK BALANCE
$9,000
Balance
Balance
Balance
$8,200
Checkbook Balance
Checkbook Balance
$9,000
$9,000
Add:
Add:
Add:
Add:
Add:
Deposits in Transit
Deposits in Transit
Deposits in Transit
2,100
Proceeds of a Note Less
Proceeds of a Note Less
Bank Charge
Bank Charge
1,085
$10,300
10,085
Deduct:
Deduct:
Deduct:
Deduct:
Deduct:
Check No. 122
Check No. 122
$850
Debit Card Transaction
Debit Card Transaction
1,300
130
130
720
Bank Service Charge
Bank Service Charge
55
1,570
Reconciled Balance
Reconciled Balance
Reconciled Balance
$8,730
Reconciled Balance
Reconciled Balance
$8,730
GENERAL JOURNAL
Date 201X
Date 201X
Account Titles and Description
PR
Dr.
Dr.
Dr.
Dr.
Dr.
Cr.
Cr.
Cr.
Cr.
Cr.
Jul.
31
Cash
1
0
8
5
00
Collection Expense
5
00
Notes Receivable
1
0
9
0
00
Note collected by the bank
31
Equipment
1
3
0
0
00
Miscellaneous Expense*
5
5
00
Cash
1
3
5
5
00
To record purchase of equipment made with debit card and bank service charge