Reconciliation of Bank and Company Cash Amounts (Appendix 6.1)

The December 31 bank statement for Miller Corporation showed a $2,020.5 balance.


On this date, the company’s Cash account reflected a $1,283.25 overdraft. In reconciling these amounts, the following information is discovered:

Cash on hand for undeposited sales receipts, December 31, $181.75.

Customer NSF check returned with bank statement, $405.6.

Cash sales of $617.25 for the week ended December 18 were recorded on the books. The cashier reports this amount missing, and it was not deposited in the bank.

Note receivable of $3,200 and interest of $32 collected by the bank and not recorded on the books.

Deposit in transit December 31, $330.

A customer check for $490.3 in payment of its account was recorded on the books at $930.4.

Outstanding checks, $2,046.45. Includes a duplicate check of $60.3 to C. Brown, who notified Miller that the original was lost. Miller stopped payment on the original check and has already adjusted the cash account in the accounting records for this amount.

1. Prepare a December 31 bank reconciliation for Miller. When required, enter amounts to the nearest cent

2. Prepare any journal entries necessary by Miller to record the information from Requirement 1.

For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”. If required, round your answers to two decimal places.


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