Bank Statement Reconciliation
Theraux Corporation received its bank statement for the month ended October 31, 1999. Contained in the bank statement were the following items:
|
Check # |
$ Amount |
|
|
Checks cleared: |
1140 |
$100 |
|
1156 |
400 |
|
|
1159 |
250 |
|
|
1161 |
500 |
|
|
1162 |
183 |
|
|
1163 |
175 |
|
|
1165 |
194 |
|
|
Date |
$ Amount |
|
|
Deposits cleared: |
10/3/99 |
$1,250 |
|
10/5/99 |
480 |
|
|
10/16/99 |
1,595 |
|
|
10/25/99 |
942 |
|
|
10/28/99 |
2,106 |
|
|
Other Items: |
||
|
(NSF) from J. Strauss |
$ 275 |
|
|
Bank charges |
80 |
|
|
Note receivable collected |
640 |
|
|
Interest on note receivable |
15 |
|
|
Beginning bank balance |
5,300 |
|
|
Ending bank balance |
10,171 |
Theraux’s check register showed the following during October:
|
Check # |
$ Amount |
|
|
Checks written: |
1140 |
$100 |
|
1155 |
65 |
|
|
1156 |
400 |
|
|
1157 |
320 |
|
|
1158 |
82 |
|
|
1159 |
520 |
|
|
1160 |
125 |
|
|
1161 |
500 |
|
|
1162 |
183 |
|
|
1163 |
175 |
|
|
1164 |
104 |
|
|
1165 |
194 |
|
|
1166 |
220 |
|
|
Deposits: |
Date |
$ Amount |
|
10/3 |
1,250 |
|
|
10/5 |
480 |
|
|
10/12 |
1,190 |
|
|
10/16 |
1,595 |
|
|
10/20 |
1,800 |
|
|
10/25 |
942 |
|
|
10/28 |
2,106 |
|
|
10/31 |
745 |
Other Items:
• Outstanding check from September’s bank reconciliation: #1142 for $195.
• Beginning checking balance: $5,105
• Ending checking balance: $12,225
Required
a. Prepare a bank reconciliation for October, 1999. (Be aware of transposition errors.)
b. What adjustment to the accounting equation is necessary for October?