5-18 The following data were accumulated for use in reconciling thebank account

Question

5-18

The following data were accumulated for use in reconciling thebank account of Spectrum Co. for July:

a. Cash balance according to the company's records at July 31,$8,346.50.

b. Cash balance according to the bank statement July 31,$9,066.35.

c. Checks outstanding $3,175.25.

d. Deposit in transit, not recorded by bank, $2,615.40.

e. A check for $240 in payment of an account was erroneouslyrecorded in the check register at $420.

f. Bank debit memorandum for service charges, $20.00.

Prepare bank reconciliation, using the format included.

Explanation / Answer

Bankbalance 9,066.35 Add: Deposit intransit 2,615.40 11,681.75 Less: ChecksOutstanding 3,175.25 Bank balance afterreconciliation 8,506.50 BookBalance 8,346.50 Add: error inrecording 180.00 8,526.50 Less: ServiceCharge 20.00 Book Balance afterreconciliation 8,506.50

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

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