Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. pretty resorts, inc. is preparing the bank reco

2. Pretty Resorts, Inc. is preparing the bank reconciliation for the month of September. The...

80.2K

Verified Solution

Question

Accounting

2. Pretty Resorts, Inc. is preparing the bank reconciliation for the month of September. The September 30th balance on the bank statement is $3,616.45, and the Cash general ledger balance on this date is $3,461.22. The following information is available:

1) There was a deposit in transit in the amount of $824.11.

2) The bank erroneously deducted a $25 check drawn on the books of Pretty Valley Resorts from our account.

3) At September 30th three checks are outstanding: Check 639 dated 9/18 for $13.75; Check 646 dated 9/20 for $30.00; and Check 672 dated 9/27 for $193.50.

4) During the month of September the bank collected an account receivable for us in the amount of $1040.00.

5) A check actually written for $36.45 for utilities expense was erroneously recorded in our records by the bookkeeper as $63.45.

6) The bank assessed a service charge of $9.40 for September.

7) We deposited an NSF check in the amount of $290.51.

Required:

a. Prepare a bank reconciliation at the end of September showing the true cash balance.

b. Prepare any necessary journal entries to adjust the books to the true cash balance.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students