Bank service Fees Deposit in transit EFT Deposit Error Correction Interest recei

Question

Bank service Fees Deposit in transit EFT Deposit Error Correction Interest received from bank NSF Check Outstanding check #853 Problem 5-176 [LO 5-4] You have received the bank statement for your company's account and need to reconcile it with your general ledger cash account. Your records show an ending balance for the month of $12,792.40 while the banks records show an ending balance of $12,445.96. The bank charged $7.60 in service fees and paid $26.45 in interest All but three checks written during the month were processed by the bank without incident during the month. The three exceptions were: Check #841 was correctly processed by the bank as $981.27 but was mistakenly recorded by you as $781.27 (1 (2) Check #853 for $6557 had not yet been processed by the bank. (3) Check #855 for $713.46 had not yet been processed by the bank. All but two of the deposits made during the month were processed by the bank without incident. The two exceptions were: (1) A customer check for $324.95, which had been deposited during the month, was returned NSF (2) A deposit totaling $619.37 had not yet been processed by the bank. Required: Using the information provided above, prepare a bank reconcililation. (Round your answers to 2 decimal places.) Bank Reconciliation Updates to Bank Statement Updates to Company's Books Ending Cash Balance per Bank Statement Additions Ending Cash Balance per Books Additions: 0.00 0.00 0.00 0.00 Deductions: Deductions 0.00 0.00 Up-to-date ending cash balance Up-to-date ending cash balance

Explanation / Answer

Bank Reconciliation                 Updates to Bank Statement                 Updates to Company's books Ending Cash Balance per Bank Statement 12,445.96 Ending Cash Balance per Bank Statement 12,792.40 Addittions: Addittions: Deposit in transit 619.37 interest earned 26.45 619.37 26.45 13,065.33 12,818.85 Deductions: Deductions: Checks outstanding check #853 65.57 Service fees 7.6 check #855 713.46 NSF 324.95 Error in recording 200 779.03 532.55 Up-to-date ending cash balance 12,286.30 Up-to-date ending cash balance 12,286.30

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