2 The balance shown on the bank statement on the same date was $13,097. Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance. On August 31, 2007, the balance in the checkbook and the Cash account of the Hampton Inn was $11,549.The balance shown on the bank statement on the same date was $13,097.NotesThe firm’s records indicate that a $ deposit dated August 30 and a $ deposit dated August 31 do not appearon the bank statement.A service charge of $8 and a debit memorandum of $320 covering an NSF check have not yet been entered in thefirm’s records. (The check was issued by Neal Woodson, a credit customer.)The following checks were issued but have not yet been paid by the bank.A credit memorandum shows that the bank collected a $2,000 note receivable and interest of $60 for the firm.These amounts have not yet been entered in the firm’s records.INSTRUCTIONSPrepare a bank reconciliation statement for the firm as of August 31.Record general journal entries for items on the bank reconciliation statement that must be journalized.Date the entries September 4, 2007.Analyze: What effect did the journal entries recorded as a result of the bank reconciliation have on thefundamental accounting equation?
3 Bank reconciliation statement First Section Bank statement balance $13,097+ deposits in transit477(-) outstanding checks (110)(25)(238)(577)(78)(145)Adjusted bank balance $13,281
4 Bank reconciliation statement Second section Book balance $11,549+ deposits not recorded 2,00060(-) deductions (8)(320)Adjusted book balance $13,281*Note – the adjusted bank balance and the adjusted book balance are now equal.