Practice Problems for Exam 2 6 Help Save 14 Exercise 7-29 Bank reconciliation [A

Question

Practice Problems for Exam 2 6 Help Save 14 Exercise 7-29 Bank reconciliation [Appendix 7A] en Company's general ledger showed a checking account balance of $24,820 at the end of May 2018. The May 31 cash receipts 440, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by nts the bank on June 1. The bank statement dated May 31, 2018, showed bank service charges of $48. All checks written by the 024532) had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $1990 Required: Prepare a bank reconciliation as of May 31, 2018. (Hint You will need to compute the balance that would appear on the bank statement Book Bank Reconciliation Bank Balance to Corrected Balance nt Balance per bank statement Corrected cash balance Book Balance to Corrected Balance Balance per books Corrected cash balance

Explanation / Answer

Usually Bank reconciliation starts with Balance as per Bank Statement because which will be more reliable and adjust for changes.

Here This case required ti find Balance as per bank statement the Balancing figure.

The Service charge deducted by Bank is not reflected in ledger. So in books deduct for $48. All other transactions are in Book are right.

In Bank statement some trnsactions are no reflected. There is uncleared check written by company to suppliers which may be under processing or may not submited by other party. Which is in books but not in bank,So add back to get Balance in bank.

Likewise Deposited in Night Depository will reflect in bank only next working day will need to be deducted to get Bank Balance

  

Balance per book $24,820 Less:Service Charge ($48) Corrected Balance 24,772

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