Bank Reconciliation
Tosh Corp. prepares monthly bank reconciliations as part of its cash controls. Tosh's bank provided the following amount about Tosh's cash balance at the bank for during the month of April:
Balance, April 30 $86,250
Service charge for April 60
Note ($4,000) and interest ($205) collected for Tosh from a customer 4,205
Interest earned during April 110
NSF check from Orange Corp. (deposited by Tosh) for goods purchased on account 445
Tosh then analyzed its cash balance on its own set of books, revealing the following details:
Checking account balance per Tosh’s books $83,135
Deposit in transit at April 30 2,090
Outstanding checks as of April 30 1,350
Error in recording a check issued by Tosh. (Correct amount of the check is $549, but was recorded as a cash disbursement of $594. The check was issued to pay for merchandise originally purchased on account.) 45
Required:
Question Content Area
1. Prepare a bank reconciliation at April 30 in proper form.
Tosh Corp.
Bank Reconciliation
April 30
Cash balance from bank statement $fill in the blank 1221b704d030fc2_1
86,250
Add:
Deposit in transit
Deposit in transit
2,090
Less:
Outstanding checks
Outstanding checks
1,350
Adjusted cash balance $fill in the blank 1221b704d030fc2_6
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Cash balance from company records $fill in the blank 1221b704d030fc2_7
Add:
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Less:
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Adjusted cash balance $fill in the blank 1221b704d030fc2_20
Question Content Area
2. Record any necessary adjusting journal entries. If an amount box does not require an entry, leave it blank.
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(Record bank service charge)
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(Record interest)
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(Record NSF check)
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(Record note receivable collected by bank)
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(Correct error in recording check)
