The following information is for Travic Parts: a.Balance per the bank statement

Question

The following information is for Travic Parts:
a.Balance per the bank statement dated January 31, 2011 is $29,350.
b.Balance of the Cash account on the company books as of January 31, 2011 is $23,811.
c.Cheque #836, for office supplies in the amount of $298, was recorded in the Cash Disbursements Journal incorrectly as $892.
d.The bank had collected a $250 note.
e.Included with the bank statement was a $25 credit memorandum for interest earned on the bank account during the month.
f.Bank deposit on January 31, 2011 for $750 does not appear on the bank statement.
g.Cheques written that had not cleared the bank by January 31, 2011 were: #856 : $1,150
#857 : $900
#859 : $1,200
#855 : $1,300
#864 : $1,150

h.Included with the bank statement was an NSF cheque for $250 that had been received from a customer in payment of his account.
i.Bank service charges for the month amount to $30.
Prepare a bank reconciliation statement as of January 31, 2011

Explanation / Answer

Jan 32, 2011

Opening Cash Book Balance    $23,811

Less: correction *892-298)     ($594)

Add reciepts-note                  $250

Add: int earned                      $25

Less NSF check                      ($30)

Add adjusted cash book balance $24,400

Less: check not yet credited   ($750)

Add: total unpresented checks $5,700

Bank statement balance at end of period $29,350

Hope this helps

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