College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 19

Preparing a bank reconciliation statement and journalizing entries to adjust the cash balance.
On October 7, 2013, Peter Chen, attorney-at-law, received his September bank statement from First Texas National Bank. Enclosed with the bank statement, which appears on the next page, was a debit memorandum for $118 that covered an NSF check issued by Annette Cole, a credit customer. The firm's checkbook contained the following information about deposits made and checks issued during September. The balance of the Cash account and the checkbook on September 30 was $8,134.
INSTRUCTIONS
1. Prepare a bank reconciliation statement for the firm as of September 30, 2013.
2. Record general journal entries for any items on the bank reconciliation statement that must be journalized. Date the entries September 30, 2013.


Analyze: How many checks were paid (cleared the bank) according to the September 30 bank statement?