Reference no: EM132193283

Question -

December 31, after all posting was completed, the cash account of Reynold Company had a $9675 debit balance but its December 31 bank statement showed only $9000 on deposit in the bank that day. The following information was available to reconcile the two accounts:

a. Check 409 , dated December 15, for $1125, was not among the cancelled checks.

b. Check 437, for store supplies, was correctly drawn as $419 and paid by the bank but it was erroneously entered in the journal as though it were $491.

c. The December 31 cash receipts, $1392, were placed in the bank's night depository after banking hours on that date and did not appear on the bank statement.

d. Included with the December cancelled checks returned was $25 debit memo for bank services.

e. Also included with the cancelled checks was a memo with a $455 NSF check attached. The check had been received from a customer in payment of his account receivable and was returned by his bank as uncollectible.

Required - Prepare a December 31 bank reconciliation and required general journal entries.