Bank Reconciliation and Related Journal Entries The book balance in the checking account of Lyle's Salon as of November 30 is $3,277.77. The bank statement shows an ending balance of $2,109.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, ar noting the service charges and other debit and credit memos shown on the bank statement, the following were found: a. An ATM withdrawal of $150.00 on November 18 by Lyle for personal use was not recorded on the books. b. A bank debit memo issued for an NSF check from a customer of $19.20. c. A bank credit memo issued for interest of $20.00 earned during the month. d. On November 30, a deposit of $1,186.00 was made, which is not shown on the bank statement. e. A bank debit memo issued for $16.80 for bank service charges. f. Checks No. 549, 561, and 562 for the anounts of $181.00, $24.00, and $9.50, respectively, were written during November but have not ye been received by the bank. g. The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.73, has not yet been received by the bank. h. Check No. 523 written to a creditor in the amount of $374.20 was recorded in the books as $324.20. Required: 1. Prepare a bank reconciliation as of November 30.
Bank Reconciliation and Related Journal Entries The book balance in the checking account of Lyle's Salon as of November 30 is $3,277.77. The bank statement shows an ending balance of $2,109.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, ar noting the service charges and other debit and credit memos shown on the bank statement, the following were found: a. An ATM withdrawal of $150.00 on November 18 by Lyle for personal use was not recorded on the books. b. A bank debit memo issued for an NSF check from a customer of $19.20. c. A bank credit memo issued for interest of $20.00 earned during the month. d. On November 30, a deposit of $1,186.00 was made, which is not shown on the bank statement. e. A bank debit memo issued for $16.80 for bank service charges. f. Checks No. 549, 561, and 562 for the anounts of $181.00, $24.00, and $9.50, respectively, were written during November but have not ye been received by the bank. g. The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.73, has not yet been received by the bank. h. Check No. 523 written to a creditor in the amount of $374.20 was recorded in the books as $324.20. Required: 1. Prepare a bank reconciliation as of November 30.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bank Reconciliation and Related Journal Entries
The book balance in the checking account of Lyle's Salon as of November 30 is $3,277.77. The bank statement shows an ending balance of
$2,109.00. By examining last month's bank reconciliation, comparing the deposits and checks written per books and per bank in November, an
noting the service charges and other debit and credit memos shown on the bank statement, the following were found:
a. An ATM withdrawal of $150.00 on November 18 by Lyle for personal use was not recorded on the books.
b. A bank debit memo issued for an NSF check from a customer of $19.20.
c. A bank credit memo issued for interest of $20.00 earned during the month.
d. On November 30, a deposit of $1,186.00 was made, which is not shown on the bank statement.
e. A bank debit memo issued for $16.80 for bank service charges.
f. Checks No. 549, 561, and 562 for the anounts of $181.00, $24.00, and $9.50, respectively, were written during November but have not yet
been received by the bank.
g. The reconciliation from the previous month showed outstanding checks totaling $271.95. One of those checks, No. 471 for $18.73, has not
yet been received by the bank.
h. Check No. 523 written to a creditor in the amount of $374.20 was recorded in the books as $324.20.
Required:
1. Prepare a bank reconciliation as of November 30.
Transcribed Image Text:2. Prepare the required journal entries.
Page:
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT
CREDIT
NO.
REF.
20--
1
Nov. 30
1
3
Interest earned for November
3
4
4
88
5
Nov. 30
6
Unrecorded ATM withdrawal
8
8
9.
Nov. 30
10
10
11
NSF check
11
12
12
13 Nov. 30
13
14
14
dropdown
Bank service charge
15
15
16
16
17 Nov. 30
17
00
2.
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