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home / study / business / accounting / accounting questions and answers / the following data were accumulated for use in reconciling the bank account of zek’s co. ... Question: The following data were accumulated for use in reconciling the bank account of Zek’s Co. for Ma... The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016: 1. Cash balance according to the company’s records at May 31, 2016, $20,014. 2. Cash balance according to the bank statement at May 31, 2016, $28,514. 3. Checks outstanding, $14,232. 4. Deposit in transit, not recorded by bank, $6,214. 5. A check for $55 in payment of an account was erroneously recorded in the check register as $550. 6. Bank debit memo for service charges, $13. A. Prepare a bank reconciliation, using the format shown in Exhibit 13. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word “Deduct:” or “Add:” will automatically appear if it is required. B. If the balance sheet were prepared for Zek’s Co. on May 31, 2016, what amount should be reported for cash? C. Must a bank reconciliation always balance (reconcile)?
Explanation / Answer
Z Co.
Bank Reconciliations
31-May-16
cash balance according to bank statement
$28,514.00
Add: Deposit in transit
$6,214.00
$34,728.00
Less: Checks Outstanding
($14,232.00)
Adjusted Bank Balance
$20,496.00
Cash Balance acording to company's record
$20,014.00
Add: Error in Recording check($550-$55)
$495.00
$20,509.00
Less: Bank Service Charges
($13.00)
Adjusted Balance
$20,496.00
B.
If the balance sheet was prepared on Mt 31st 2016 $20496 would be reported for cash on balance sheet.
C.
Yes bank recon should always balance.
please provide feedback.
also in case of any query please comment befor providing negative comment.
Z Co.
Bank Reconciliations
31-May-16
cash balance according to bank statement
$28,514.00
Add: Deposit in transit
$6,214.00
$34,728.00
Less: Checks Outstanding
($14,232.00)
Adjusted Bank Balance
$20,496.00
Cash Balance acording to company's record
$20,014.00
Add: Error in Recording check($550-$55)
$495.00
$20,509.00
Less: Bank Service Charges
($13.00)
Adjusted Balance
$20,496.00
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