Bank reconciliation. Benson Plastics Company deposits all receipts and makes all

Question

Bank reconciliation.

Benson Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION

Balance per bank $53,492

Add: Deposits in transit 4,200

Deduct: Outstanding checks (7,600 )

Balance per books $50,092

Month of April Results

Per Bank/ Per Books

Balance April 30 $55,990 $54,710

April deposits 23,568 27,778

April checks 22,200 20,160

April note collected (not included in April deposits) 6,000 -0-

April bank service charge 70 -0-

April NSF check of a customer returned by the bank (recorded by bank as a charge) 1,800 -0-

nstructions (a) Calculate the amount of the April 30:

1. Deposits in transit

2. Outstanding checks

(b) What is the April 30 adjusted cash balance? Show all work

Explanation / Answer

Benson Plastics Company

Bank Reconciliation

April 30

Balance per bank statement, April 30                                 $55,990

Add: Deposits in transit (27,778-(23,568-4200))                     $8410

Less: Outstanding checks (20,160-(22,200-7600)                   ($5560)

Correct cash balance, April 30                                            $58,840

Balance per books, April 30                                                 $54710

Add: Collection of note                                                         $6,000

Less: Bank service charge                                                    ($ 70)

Less: NSF check 335                                                             ($1800)

Corrected cash balance, April30                                         $58,840

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