The cash account for Capstone Medical Co. at November 30, 2016, indicated a bala

Question

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $33,700. B. A deposit of $18,900, representing receipts of November 30, had been made too late to appear on the bank statement. C. The bank collected $22,042 on a $20,600 note, including interest of $1,442. D. A check for $1,600 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $160. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. E. A check drawn for $680 had been erroneously charged by the bank as $860. F. Bank service charges for November amounted to $40.

Explanation / Answer

Bank Reconcialtion Statement Balance as per cash balance on 30th November ,2016 91408 Add: Cheques Outstanding 33700 Bank collected note along with interest 22042 Less: Cash deposited but not recorded 18900 Wrongly debited by bank 180 Bank Charges 40 Cheque returned but incorrectly recorded by Company 1440 Balance as per cash balance on 30th November ,2016 126590

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