Bank Reconciliation

This is just an example, for the transaction of Shehgarlynn's  Proprietorship in computing the Bank Reconciliation for the month ended June 30, 2011. But if you want to learn more about it click the link Bank Reconciliation.

Exercise BR 001

On June 30, 2011, the balance in the Shehgarlynn Proprietorship's checkbook and cash account was $6,418.59. The balance shown on the bank statement on the same day was $7,542.03.

Notes:

1.  The firm's records indicate that a deposit of $944.07 make on June 30, was not on the statement.
2. A service charge of $14.34 and a debit memorandum of $120 covering NSF check have not yet been entered  in the firm's books. (The check was issued by Paul Gibbs, a credit customer).
3. The following checks were still outstanding . Check No. 523 for  $148.95, Check No. 525 for $97.50, Check No. 526 for $425.40
4. A credit memo shows that the Bank has collected a $1.500 note receivable and interest of $30 for the firm.

Instruction:

1. Prepare a bank reconciliation statement for the firm as of June 30, 2011.
2. Record general journal entries for any items on the bank reconciliation that must be journalized.