Texts: You are an employee at a full-service bookkeeping and auditing firm called Accounting Solutions. You have been doing general bookkeeping services for one of your clients, Atlas Travel. Today, the owner, Paris, wants help with preparing a bank reconciliation statement. Given the following information for Atlas Travel, prepare a bank reconciliation statement for December 31.
Atlas Travel partial cash ledger (t-account) amounts for December transactions
Cash Debits/Deposits Cash Credits/Payments
$3,725 $9
530 750
980 93
353 134
2,040 960
210 2,250
Atlas Travel had a cash balance of $7,242 on December 31.
Atlas Travel received the following bank statement for December:
Best Bank
Bank Statement for December
Beginning December 1, Balance $4,020
Deposits and other additions:
12/1 $635 EFT
12/5 $3,725
12/10 $530
12/15 $980
12/18 $353
12/31 $1,800 BC
8,023
Checks and other deductions:
12/8 $452 NSF
12/15 (check number 1416) $9
12/19 $350 EFT
12/22 (check number 1417) $750
12/29 (check number 1418) $93 EFT is electronic funds transfer
12/31 (check number 1419) $314
BC is bank collection
12/31 $45 SC
2,013
NSF is non-sufficient funds
December 31 Balance $10,030
SC is service charge
Additional Data:
The EFT deposit was a receipt of rent revenue.
The EFT deduction was payment of insurance expense.
The NSF check was received from a customer.
The $1,800 bank collection was a note receivable.
The correct amount of check 1419 is $314. Atlas Travel mistakenly recorded the check for $134.
Requirements:
1. Prepare the bank reconciliation.
Atlas Travel Bank Reconciliation
December 31, 20##
Best Bank Balance, Dec. 31
Atlas Travel Balance Dec 31
Add:
Add:
Less:
Less:
Adjusted bank balance
Adjusted company balance and journal entries