Bank Reconciliation for Zocor Enterprises Assignment | Top Universities
January 29th, 2020
Following is a bank reconciliation for Zocor Enterprises for June 30, 2018.
| Cash Account |
Bank Statement |
|||||||||||||
| Balance as of 6/30/2018 | $ | 24,035 | $ | 21,030 | ||||||||||
| Deposit in transit | 4,125 | |||||||||||||
| Outstanding checks | (540 | ) | ||||||||||||
| Note collected by bank | 1,255 | |||||||||||||
| Bank service charge | (25 | ) | ||||||||||||
| NSF check | (650 | ) | ||||||||||||
| Adjusted cash balance as of 6/30/2018 | $ | 24,615 | $ | 24,615 | ||||||||||
When reviewing the bank reconciliation, Zocar’s auditor was unable to locate any reference to the NSF check on the bank statement. Furthermore, the clerk who reconciles the bank account and records the adjusting entries could not find the actual NSF check that should have been included in the bank statement. Finally, there was no specific reference in the accounts receivable supporting records identifying a party who had written a bad check.
- Prepare the adjusting entry that the clerk would have made to record the NSF check. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.
Record adjusting entry for recognizing the NSF check
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