Beckett Co. received its bank statement for the month ending June 30, 2016, and
ID: 2332245 • Letter: B
Question
Beckett Co. received its bank statement for the month ending June 30, 2016, and reconciled the statement balance to the June 30, 2016, balance the Cash account. The reconciled balance was determined to be $6,524. The reconciliation recognized the following items: 1. Deposits in transit were $3,433. 2. Outstanding checks totaled $2,647 3. Bank service charges shown as a deduction on the bank statement were $90. 4. An NSF check from a customer for $617 was included with the bank statement. Beckett Co. had not been previously notified that the check had been returned NSF 5. Included in the canceled checks was a check written for $720. However, it had been recorded as a disbursement of $1,000 Required: Prepare the Bank reconciliation statement for the month ending June 30, 2016 BECKETT COMPANY Bank Reconciliation June 30, 2016 6,524 Balance per books Balance per bank Add Add: Deposits in transit $ 3,433 3,433 9,957 Deduct: Deduct $ 2,647 SF check 617 Outstanding checks 617 2,647 $7,310 Reconciled balance $ (617) Reconciled balanceExplanation / Answer
Bank reconciliation statement for Beckett Company will go as follows:
Beckett Comapny
Bank Reconciliation
June 30,2016
Balance as per Bank
6524
Balance as per Books
8297
Add:
Add:
Deposits in Transit
3433
O/s Checks
2647
NSF Check
617
Bank Charges
90
Booking Error
280
Deduct:
Deduct:
O/s Checks
2647
Deposits in Transit
3433
NSF Check
617
Bank Charges
90
Booking Error
280
Balance as per Books
8297
Balance as per Books
6524
Working Note:
<It would be a good exercise to create explanations for if we start from Book Balance of $8297 and we reach at $6524>
Beckett Comapny
Bank Reconciliation
June 30,2016
Balance as per Bank
6524
Balance as per Books
8297
Add:
Add:
Deposits in Transit
3433
O/s Checks
2647
NSF Check
617
Bank Charges
90
Booking Error
280
Deduct:
Deduct:
O/s Checks
2647
Deposits in Transit
3433
NSF Check
617
Bank Charges
90
Booking Error
280
Balance as per Books
8297
Balance as per Books
6524
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