Question

a.Balance per the bank statement dated October 31,2023 , is $25,380. b. Balance of the Cash account on the company books as of October 31,2023 , is $5,530. c. $14,590 of customer deposits were outstanding as of September 30; this amount had been deposited to Dundee's account in October. d. Cheques written in October that had not cleared the bank as of October 31 were: #8700,$940 #8709,$12,510 #8801,$530 #8815,$136 e. The bank charged Dundee's account for a $2,305 cheque of the E-Zone Networks; the cheque was found among the cancelled cheques returned with the bank statement. f. Bank service charges for October amount to $56. g. A customer's cheque (Teresa Krant) for $4,040 had been deposited in the bank correctly but was recorded in the accounting records as $4,400. h. Among the cancelled cheques is one for $450 given in payment of an account payable to Decker Company; the bookkeeper had recorded the cheque incorrectly at $540 in the company records. i. The bank statement showed an electronic fund transfer of $21,780 for a customer payment. A bank service fee of $95 was charged. j. A bank deposit of October 31 for $13,320 does not appear on the bank statement.Prepare a bank reconciliation statement as of October 31,2023.

Answer 1

To prepare a bank reconciliation statement for Dundee's company, start with the balance per bank statement and the company books balance, and make adjustments for outstanding checks, deposits in transit, electronic funds, bank errors, service charges, and recording errors to match the adjusted bank balance with the adjusted book balance.

Step-by-step explanation:

To create a bank reconciliation statement for Dundee's company as of October 31, 2023, you must adjust the balance per bank statement and the company's book balance to reflect accurate cash amounts.

Here are the reconciliations steps:

Start with the ending balance per bank statement: $25,380.

Subtract outstanding checks: ($940 + $12,510 + $530 + $136) to get the adjusted bank balance.

Add any deposits in transit, which are deposits not yet reflected in the bank statement: $13,320.

Start with the ending balance per books: $5,530.

Add any electronic funds received that are not recorded in the books yet: $21,780.

Subtract bank errors, like the wrong check for E-Zone Networks incorrectly charged to the company account: $2,305.

Subtract bank service charges: $56.

Adjust for any errors in recording customer checks. Correct the error from recording Teresa Krant's check: ($4,400 - $4,040) and the Decker Company payment error: ($540 - $450).

Once these adjustments are accounted for, the adjusted bank balance and the adjusted book balance should be equal, indicating that the bank and the company's records are reconciled.