This information relates to the Cash account in the ledger of Sandhill Company.

Question

This information relates to the Cash account in the ledger of Sandhill Company. Balance September 1-$19,970; Cash deposited-$64,000 Balance September 30-$21,170; Checks written-$62,800 The September bank statement shows a balance of $20,070 at September 30 and the following memoranda. Credits Debits $760 Collection of electronic funds transfer2,030 NSF check: H. Kane Interest earned on checking account 70 Safety deposit box rent 85 At Septmber 30, deposits in transit were $4,963 and outstanding checks totaled $2,608. Prepare the bank reconciliation at September 30, 2017. (List items that increase balance as per bank & books first.) SANDHILL COMPANY Bank Reconciliation

Explanation / Answer

a) SANDHILL COMPANY

Bank Reconciliation

September 30, 2017 (Amounts in $)

Cash balance as per bank statement 20,070 Add: Deposits in transit 4,963 25,033 Less: Outstanding checks 2,608 Adjusted cash balance as per bank 22,425 Cash balance as per books 21,170 Add: Collection of electronic funds transfer 2,030 Interest Earned 70 2,100 23,270 Less: NSF check 760 Safety deposit box rent 85 845 Adjusted cash balance as per books 22,425

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