On august 31 kravsnik company receives its bank statement

Reference no: EM13482538

On August 31, Kravsnik Company receives its bank statement. The company deposits its receipts in the bank and makes all payments by check. The debit memo for $149 is for an NSF check written by N. Carlton. Check no. 1924 for $336, payable to Garner Company (a creditor), was incorrectly recorded in the checkbook and journal as $200.

The balance of the Cash account as of August 31 is $1,509. Outstanding checks as of August 31 are: no. 1928, $119; no. 1929, $243. The accountant notes that the deposit of August 31 for $261 did not appear on the bank statement.

Instructions:

(a) Prepare a bank reconciliation as of August 31, assuming that the debit memos have not been recorded.

(b) Record the necessary journal entries.

Peabody National Bank
Kravsnik Company 416 Seneca Avenue Kansas City, Missouri 64102				Account No. 152-6 55-217 Statement Date: August 1-31
Summary: Balance Last Statement $1,360.00 Amount of Checks and Debits $2,698.00 Number of Checks 11 Amount of Deposits and Credits $2,651.00 Number of Deposits 7 Balance this Statement $1,313.00
Checks/Other Debits	Checks	Check Number	Date Posted	Amount	Check Number	Date Posted	Amount
		1917	8-04	172.00	1923	8-09	621.00
		1918	8-04	76.00	1924	8-17	336.00
		1919	8-05	146.00	1925	8-17	14.00
		1920	8-07	206.00	1926	8-23	533.00
		1921	8-07	139.00	1927	8-28	94.00
		1922	8-08	200.00

	Other Debits	Description				Date Posted	Amount
	Other Debits	DM NSF check DM Service charge				8-31 8-31	149.00 12.00

Deposits/Other Credits	Deposits	Date Posted	Amount	Date posted	Amount
		8-02	326.00	8-18	419.00
		8-05	412.00	8-24	398.00
		8-09	437.00	8-28	291.00

Please examine this statement carefully. Report any possible errors in 10 days. Code Symbols CM Credit Memo DM Debit Memo OD Overdraft EC Error Correction

Reference no: EM13482538

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