Assessment: Bank Reconciliation and Adjusting Entries
Attempt #1
Note: This exercise is in two steps. Each subsequent step moves to the right on this spreadsheet.
The following information pertains to Kelker Corp.
1. Cash balance per bank, December 31, $8,394.
2. The bank service charge for the month is $20.
3. Cash balance per books, December 31, $7,947.
4. The bank erroneously deposited a check for $150 in Kelker's account. The deposit should have gone in a different account.
5. Deposits in transit, December 31, $1,265.
6. Outstanding checks, December 31, $985.
7. The bank collected a $600 note for Kelker Corp. plus $12 interest less $15 fees.
Instructions: Step 1. Please prepare a bank reconciliation in proper format based on the above information.
Step 2. Prepare the adjusting entries required as a result of the bank reconciliation.
Date each entry December 31.
Date
General Journal
Account Title and Explanation
J1
Ref.
Debit
Credit