Bank Reconciliation The following data were accumulated for use in reconciling t

Question

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $28,670. 2. Cash balance according to the bank statement at July 31, $30,120. 3. Checks outstanding, $5,820. 4. Deposit in transit, not recorded by bank, $4,670. 5. A check for $590 in payment of an account was erroneously recorded in the check register as $950. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation, using the format shown in Exhibit 14. Mathers Co. Bank Reconciliation July 31 Cash balance according to bank statement Add deposit in transit, not recorded by bank Deduct outstanding checks Adjusted balance 00000000 Cash balance according to company's records Add error in recording check $950 instead of $590 Deduct bank service charge Adjusted balance

Explanation / Answer

Mathers Co.

Bank Reconciliation

July 31

Cash balance according to bank statement $30,120 Add deposit in transit, not recorded by bank $4,670 Deduct outstanding checks $5,820 Adjusted balance $28,970 Cash balance according to company's records $28,670 Add error in recording check $950 instead of $590 $360 Deduct bank service charge $60 Adjusted balance $28,970

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