7-45

End of Chapter: Internal Control and Cash

P-F:7-29A Preparing a bank reconciliation and journal entries

(Learning Objective 6)

The August 31 bank statement of Well Healthcare has just arrived from

United Bank. To prepare the bank reconciliation, you gather the

following data:

a. The August 31 bank balance is $4,540.

b. The bank statement includes two charges for NSF checks from

customers. One is for $380 (#1), and the other is for $180 (#2).

c. The following Well Healthcare checks are outstanding at August 31:

typed solutions

Check No.

237

288

291

294

295

296

Amount

$80

190

570

600

30

70