The cash account of Baylor Associates at February 28, 2009, follows.
|
Cash |
|||
|
Feb. 1 |
Bal. 3,995 |
Feb. 3 |
400 |
|
6 |
800 |
12 |
3,100 |
|
15 |
1,800 |
19 |
1,100 |
|
23 |
1,100 |
25 |
500 |
|
28 |
2,400 |
27 |
900 |
|
Feb. 28 |
Bal. 4,095 |
Baylor Associates received the bank statement on February 28, 2009 (negative amounts are in parentheses):
|
Bank Statement for February 2009 |
||
|
Beginning balance |
||
|
Deposits: |
$3,995 |
|
|
Feb. 7 |
$ 800 |
|
|
15 |
1,800 |
|
|
24 |
1,100 |
3,700 |
|
Checks (total per day): |
||
|
Feb. 8 |
$ 400 |
|
|
16 |
3,100 |
|
|
23 |
1,100 |
(4,600) |
|
Other items: |
||
|
Service charge |
(10) |
|
|
NSF check from M. E. Crown |
(700) |
|
|
Bank collection of note receivable for the company |
1,000 |
|
|
EFT—monthly rent expense |
(330) |
|
|
Interest revenue earned on account balance |
15 |
|
|
Ending balance |
$3,070 |
Additional data:
Baylor deposits all cash receipts in the bank and makes all payments by check.
Required
1. Prepare the bank reconciliation of Baylor Associates at February 28, 2009.
2. Journalize the entries based on the bank reconciliation.