Question

Donna's Day care - Bank Reconciliation :

Prepare the bank reconciliation statement as at July 31 for Donna's Day care based on the information provided below.
Prepare the bank reconciliation statement using Word or Excel and upload that file here below:
Cash balance per bank, July 31
$5,586
Cash balance per general ledger, July 31
5,055
Outstanding cheques
1,816
Deposit in transit
750
NSF cheque returned by bank,
for accounts receivable 450
July interest earned, on bank statement
15
Wrote cheque no. 800 as for $1,100;
recorded payment in books for $800.
Bank erroneously recorded a $5,800
deposit for $6,000.

Answer 1

To prepare a bank reconciliation statement for Donna's Day Care, adjust the cash balance from the bank and general ledger considering outstanding checks, deposits in transit, bank interest, NSF fees, and any recording errors. The final reconciled balance will consider these adjustments.

Step-by-step explanation:

Bank Reconciliation for Donna's Day Care

Unfortunately, I am unable to upload files or create documents on this platform. However, I can explain how to prepare a bank reconciliation statement for Donna's Day Care as of July 31 using the figures provided.

Adjusted bank balance: Start with the cash balance per bank, then subtract outstanding checks and add deposits in transit.
$5,586 (bank balance) - $1,816 (outstanding checks) + $750 (deposits in transit) = $4,520

Adjusted book balance: Start with the cash balance per general ledger, add any bank credits such as interest earned, and subtract bank charges such as NSF (non-sufficient funds) fees. Adjust for any errors in recording transactions.
$5,055 (book balance) + $15 (interest earned) - $450 (NSF cheque) - $300 (check recording error) = $4,320

The discrepancy of $200 is due to the bank erroneously recording a $5,800 deposit as $6,000. This difference should be subtracted from the adjusted bank balance.

To finalize, if the above reconciliation items are the only discrepancies, the bank statement and books should reconcile to the same amount once these adjustments are made.