Question

The following information pertains to Sheridan Company.

1. Cash balance per books, August 31, $7,374.
2. Cash balance per bank, August 31, $7,338.
3. Outstanding checks, August 31, $694.
4. August bank service charge not recorded by the depositor $46.
5. Deposits in transit, August 31, $3,010.
In addition, $2,326 collected for Sheridan Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Sheridan Company.
Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.)

Answer 1

Adjusted Cash Balance at 31 August 2022 = 9654

Step-by-step explanation:

Bank Reconciliation Statement at August 31, 2022

Cash Balance as per Bank August 31, $7338

Add: Deposit in Transit $3010

Deduct: Outstanding Checks ($694 )

Adjusted Cash Balance $9,654

Cash Balance as per books, August 31, $7374

Add: Receivable collected by bank $2326

Less:Bank Service Charges ($46)

Adjusted Cash Balance $9,654