1. Sample Problem
Chapter 9

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.
Notes
The firm’s records indicate that a $ deposit dated August 30 and a $ deposit dated August 31 do not appear
on the bank statement.
A service charge of $8 and a debit memorandum of $320 covering an NSF check have not yet been entered in the
firm’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.
INSTRUCTIONS
Prepare 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 the
fundamental accounting equation?

3. Bank reconciliation statement First Section
Bank statement balance $13,097
+ deposits in transit
477
(-) 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 2,000 60
(-) deductions (8)
(320)
Adjusted book balance $13,281
*Note – the adjusted bank balance and the adjusted book balance are now equal.

5. General Journal Entries
Accounts Receivable $320
Cash $320
Miscellaneous expense $8
Cash $8

6. General Journal Entries
Cash $2,060
Notes receivable $2,000
Interest income