Question

This information relates to the Cash account in the ledger of Blossom Company. Balance September 1—$17,350; Cash deposited—$64,000 Balance September 30—$18,550; Checks written—$62,800 The September bank statement shows a balance of $17,450 at September 30 and the following memoranda. Credits Debits Collection from customer of electronic funds transfer $2,440 NSF check: H. Kane $1,170 Interest earned on checking account 55 Safety deposit box rent 70 At September 30, deposits in transit were $5,358 and outstanding checks totaled $3,003. Prepare the bank reconciliation at September 30, 2022. (List items that increase balance as per bank & books first.) BLOSSOM COMPANY Bank Reconciliation choose the accounting period

Answer 1

Adjusted Cash balance: 19,805

Step-by-step explanation:

On a bank reconciliation we adjust each oen for the unknow information for the bank or the business.

The company is unaware of the bank transaction and charges so we must adjust for theses:

Cash balance Sep 30th 18,550

Bank Collection from customer 2,440

Interest earned 55

NSF check: H. Kane (1,170)

Safety deposit box rent (70)

Adjusted Cash balance: 19,805

The bank has no knowledge about the written check of the company until the holders goes and cash them. Same is true for htdeposits in transit. Therefore, we must adjsut for that

Bank Statement September 30th 17,450

deposits in transit were 5,358

outstanding checks totaled (3,003)

Adjusted bank statement 19,805