The following information pertains to Family Video Company. Cash balance per ban

Question

The following information pertains to Family Video Company.

Cash balance per bank, July 31, $10,146.41.
July bank service charge not recorded by the depositor $39.12.
Cash balance per books, July 31, $10,175.75.
Deposits in transit, July 31, $2,095.50.
Bank collected $1,257.30 note for Family in July, plus interest $50.29, less fee $27.94. The collection has not been recorded by Family, and no interest has been accrued.
Outstanding checks, July 31, $825.63.


Prepare a bank reconciliation at July 31. (Round answers to 2 decimal places, e.g. 10.50.)

Explanation / Answer

First you start with either the cash or bank beginning balances. The bank balance you want to add deposit in transits and subtract outstanding checks. So in this problem you would start with the bank balance of 10146.41 and you want to add in the deposit in transit of 2095.50 and subtract out the outstanding check of 825.63. The ending balance for the bank should be 11416.28. To reconcile the cash balance take the beginning balance and then add the Note Receivable of 1257.30. Since the interest is not added into the Notes Receivable you want to add the interest of 50.29 into the Note Receivable. The collection fee needs to be subtracted out of the total of the Note Receivable or subtracted out as a collection fee (Depends on the way your teacher wants the format). The last thing you need to do is subtract out the bank service fee from the cash balance. The total for the ending cash balance should be 11416.28. The ending balances of the cash and bank should always be the same amount. I did the problem myself, hoped I help you out and good luck.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.