Question

Roe Company showed a $1,881.54 checkbook balance. The company's bank statement

showed a $3,240.00 balance, $21.00 interest earned, and a $14.88 service charge. A
$1,279.11 deposit was in transit. Outstanding checks total $1,881.45. In analyzing the
bank statement, the bookkeeper noticed the bank collected a $2,100 note. During the
month, Roe Company did not deduct a $1,350 check. Prepare a bank reconciliation.
d not deduct a $1,350 check.

Answer 1

To prepare a bank reconciliation, start with the checkbook balance, add any deposits in transit, subtract outstanding checks, add interest earned, and subtract any service charges. The adjusted checkbook balance is $1,285.32.

Step-by-step explanation:

To prepare a bank reconciliation, we need to compare the company's checkbook balance with the bank statement balance and make adjustments for any discrepancies. Here are the steps:

1. Start with the checkbook balance of $1,881.54.
2. Add any deposits in transit. In this case, there is a deposit of $1,279.11. Add this to the checkbook balance: $1,881.54 + $1,279.11 = $3,160.65.
3. Subtract any outstanding checks. In this case, outstanding checks total $1,881.45. Subtract this from the previous balance: $3,160.65 - $1,881.45 = $1,279.20.
4. Add any interest earned. In this case, there is $21.00 interest earned. Add this to the previous balance: $1,279.20 + $21.00 = $1,300.20.
5. Subtract any service charges. In this case, there is a $14.88 service charge. Subtract this from the previous balance: $1,300.20 - $14.88 = $1,285.32.

The adjusted checkbook balance after the bank reconciliation is $1,285.32.