Question

The South Company cash account had a balance of $1,202.50 on January 31. A deposit, made on the 31st, in the amount of $100.05 was in transit. The January 31 bank statement presented the following information.

Bank statement balance $1,421.95
NSF charge 18.00
Bank service charge 8.50
Note collected 150.00

South also had outstanding checks in the amount of $196.00. What was South’s reconciled balance?

$1,202.50

$1,326.00

$1,271.95

$1,236.00

Answer 1

$1326

Explanation:

Follow the format of the reconciliation statement

The adjusted cash balances should match

Cash balance as per the bank statement, January 31 1421.95

Add: Deposit in transit 100.05

Deduct: Outstanding checks (196)

Adjusted cash balance 1326

Balance as per depositor's record, January 31 1202.5

Subtract: NSF check (18)

Subtract: Service charges (8.5)

Add: receivable collected 150

Adjusted cash balance 1326

The reconciled amount is $1326.

!!