Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at December 31, 2018: At December 31, cash per bank statement was $16,200; cash per the company’s records was $17,225.Two debit memoranda accompanied the bank statement: services charges for December of $25, and a $775 check drawn by Jane Jones marked “NSF”.Cash receipts of $9,000 on December 31 were deposited at the bank by end of day but were not shown in the bank statement until January 4.The following checks had been issued (written) in December but were not included among the paid checks returned by the bank: check no. 410 for $8,000 and check no. 425 for $2,500.Included in the bank statement was a check withdrawn (written) for an amount of $5,300 (rent expense) that was erroneously recorded for $3,500 in Alpha's records.The bank statement shows a credit (memorandum) interest of $75. Instructions Prepare a bank reconciliation at December 31, 2018.Prepare the necessary journal entries to update the accounting records as of December 31, 2018.

The bank reconciliation statement is the statement prepared to adjust the cash book balance and pass…

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Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter8: Sarbanes-oxley, Internal Control, And Cash

Section: Chapter Questions

Problem 18E

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Shown below is the information needed to prepare a bank reconciliation for Alpha Communications at December 31, 2018:

At December 31, cash per bank statement was $16,200; cash per the company’s records was $17,225.
Two debit memoranda accompanied the bank statement: services charges for December of $25, and a $775 check drawn by Jane Jones marked “NSF”.
Cash receipts of $9,000 on December 31 were deposited at the bank by end of day but were not shown in the bank statement until January 4.
The following checks had been issued (written) in December but were not included among the paid checks returned by the bank: check no. 410 for $8,000 and check no. 425 for $2,500.
Included in the bank statement was a check withdrawn (written) for an amount of $5,300 (rent expense) that was erroneously recorded for $3,500 in Alpha's records.
The bank statement shows a credit (memorandum) interest of $75.

Instructions

Prepare a bank reconciliation at December 31, 2018.
Prepare the necessary journal entries to update the accounting records as of

December 31, 2018.

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