Question

Nicole has asked you to prepare a bank reconciliation for NGS. According to her records, NGS’s cash balance is $7,700 at December 31, but the bank reports a balance of $7,200.

a. The bank deducted $440 for an NSF check from a customer deposited on December 22.


b. NGS has written checks totaling $5,200 that have not yet cleared the bank.


c. The bank added $35 cash to the account for interest earned in December.


d. NGS made a $4,990 deposit on December 31, which will be recorded by the bank in January.


e. The bank deducted $35 for service charges.


f. NGS wrote a check to a supplier on account for $300 but mistakenly recorded it as $30.

Answer 1

Answer: Balance as per cash book $7,700, Balance as per bank statement $7,115

Step-by-step explanation:

$

Balance as per cash book. 7,700

Add: unpresented cheque. 4,990

Interest. 35

Error. 30

-----------------

5,055

------------------

12,755

Less: uncredited cheque 5,200

Bank charges. 440

--------------

( 5,640)

------------------------

Balance as per bank statement. 7,115

-------------------------------------

$

Balance as per bank statement. 7,115

Add : uncredited cheque 5,200

Bank charges. 440

--------------

5,640

--------------------

12,755

Less: unpresented cheque 4,990

Interest. 35

Error. 30

-----------------

(5,055)

-----------------------

Balance as per cash book. 7,700

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