Bank reconciliation Prepare a bank reconciliation as of August 31 from the follo

Question

Bank reconciliation Prepare a bank reconciliation as of August 31 from the following a. The August 31 balance shown on the bank statement is $9,810. b. There is a deposit in transit of $1,260 at August 31. c. Outstanding checks at August 31 totaled $1,890. account during August but not recorded on the c amounted to $108. e. A bank charge of s56 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $739 had been recorded as a disbursement of $379 g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,488.

Explanation / Answer

Balance per bank statement on August 31 $9,810 Adjustments Add- Deposit in transit $1,260 less- Outstanding checks - $1,890 Adjusted balance per bank statement $9,180 Balance per Cash account on August 31 $9,488 Add- Interest $108 less- bank charge -$56 less- Error correction -$360 Adjusted balance per cash account $9,180

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

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