Question

There were outstanding checks totaling $ 1,700 and a December 31 deposit in transit of $ 300. The bank​ statement, which came from Park Cities​ Bank, listed the December 31 balance of $ 4,460. Included in the bank balance was a collection of $ 620 on account from Brendan Ballou​, a Safety customer who pays the bank directly. The bank statement also shows a $ 20 service charge and $ 10 of interest revenue that Safety earned on its bank balance. Prepare Safety​'s bank reconciliation at December 31.

Answer 1

2,450

Step-by-step explanation:

Starting from the bank balance at 12/31 we have

$ .4,460

within which 1,700 in issued checks are not considered, which diminish the balance and neither is considered a deposit of 300 that increases the balance so, Our account is overvalued at 1,400. The records of these operations must be "canceled" to arrive at the accounting balance.

For our part we do not consider a collection of 620, an interest earned of 10 and an expense of 20

Which in total means that our account is undervalued in 610, but this is an omission of ours, so there is no record, and should be deducted from the bank balance.

Total accounting balance = 2,450

Posing it as an equation

x countable balance

+1700 (checks issued)

- 300 (transit deposit)

+620 (unregistered collection)

+ 10 (unregistered interest earned)

- 20 (unregistered bank charges)

= 4460

x = 4460-1700 + 300-620-10 + 20

x = 2,450

we must -register

accounts receivable 620

earned interests 10

banking expenses 20

Bank 610

after this registration the reconciliation is

Bank : 3,060 (2,450+610)

+1700 (outstanding checks-transit)

- 300 (transit deposit)

=4.460