The bank account as a control device helps to protect cash. One of the requiremn
ID: 2378286 • Letter: T
Question
The bank account as a control device helps to protect cash. One of the requiremnets is to conduct periodic bank statement reconciliaitons. Using the following data, complete the bank statement reconciliation.
Prepare a bank reconciliation using B&B's Restaurant Supply Inc Information
- ANSF check from Johny Jones for $3,164
- Two deposits made on August 31 were not on the bank statement, totaling $2,897
- August 31 balance in Cash was 2,005
- The owner had written check #1598 for $500 and recorded this check as $5000
- The balance on the bank statement as of August 31 wa $5316
-Bank service charge of $28 was shown on the bank statement
-Checks #1572, 1606, 1116 and 1242 for $419, $126, $650, and $1,105 were not shown on bank statement even though the company had sent the checks
Explanation / Answer
BANK BALANCE: $5,216
Add: Deposits in transit $2,897
Less: Outstanding Checks $2,300
Adjusted bank balance = $5,813
BOOK BALANCE $1,905
Less: NSF Check $3,164
Add: Rent collected $2,600
Add: Error in recording check $4,500
Less; Bank Service charge $28
ADJUSTED BOOK BALANCE: $5,813
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