SECTION-CASH,BANKRECONCILIATIONINTERVALCONTROLA,oints 22. Charlie Inc. had these

Question

SECTION-CASH,BANKRECONCILIATIONINTERVALCONTROLA,oints 22. Charlie Inc. had these items included on their previous bank reconciliation for September Deposit in transit dated 9/30 4,250 Outstanding checks: 601 3,225 622 780 The bank statement for October showed the following and contained no errors 95,233 Account balance October 1 Deposit 101 Deposit 10/15 Interest income or 4,250 5,200 Credits: Check $622 Check #623 Monthly bank fees 780 6.800) 90) Debits: Account balance October 31 97.068 During October, the cash account in the general ledger on the books showed: Cash in Bank Beginning balance 95,478 deposit 10/15 5,200 deposit 10/31 10,870 check #623 check 9624 6,800 2,440 Ending balance 102,308 Prepare the October bank reconciliation. NOTE that not all lines may be used. Balance Per Bank Less: Adjusted Bank Balance Balance Per Books Add: Less: Adjusted Book Balance

Explanation / Answer

Balance as per bank. $ 97068

Add: deposit 10/31. $ 10870

( The business deposit the amount

On the last day of month so may

be bank didn’t record it )

Less check # 624. ($ 2440)

(The check is issued by entity

but not presented in bank yet)

Adjusted bank balance $ 105498

Balance as per cash book $ 102308

Add. outstanding check #601 $ 3225

( the check amount is reduced by business

But bank doesn’t reduce the balance because

Check is issued but not presented )

Add The interest in average balance by bank $ 55

(Bank add the amount but business didn’t)

Less. Monthly bank fees. ($ 90)

Adjusted book balance. $ 105498   

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