Spectrum Company
The following data were accumulated for use in reconciling the bank account of Spectrum Co. for July:
a. Cash balance according to the company’s records at July 31, $8,346.50.
b. Cash balance according to the bank statement at July 31, $9,066.35.
c. Checks outstanding, $3,175.25.
d. Deposit in transit, not recorded by bank, $2,615.40.
e. A check for $240 in payment of an account was erroneously recorded in the check register as $420.
f. Bank debit memorandum for service charges, $20.00.
Required:
a) Prepare a bank reconciliation statement (15 marks)
b) Journalize the entry or entries that should be made by the company (10 marks)