Question

According to the Portland Business Journal, Jim Houser, a Portland auto specialist, landed a key Small Business Administration appointment. Help Jim reconcile Remington’s Auto Clinic’s checkbook and bank balance according to the following: bank statement balance, $18,835; checkbook balance, $22,385,105; interest earned, $4,020; deposits in transit, $100,740 and $22,376,200; ATM card fees, $450; outstanding checks—No. 10189, $56,710; No. 10192, $15,365; No. 10193, $22,650; and No. 10194, $12,375.

Answer 1

reconciliate balance $ 22,388,675‬

Step-by-step explanation:

bank statement: 18,835

deposits in transit 100,740

22,376,200

outstanding check

10189 (56,710)

10192 (15,365)

10193 (22,650)

10194 (12,375)

Adjusted balance: 22,388,675‬

checkbook balance: 22,385,105

interest earned 4,020

ATM card fees (450)

Adjusted balance: 22,388,675

Notes: For each statement we adjust for the unknown information.

The bank is unaware of the outstanding check and the deposit in transit. So we adjust for these concepts.

The company has no knowledge of the ffes and interest earned until receiving the bank statement so we must adjust for that amount.