Question

Melissa Jackson, bookkeeper for Kinko Company, cannot prepare a bank reconciliation. The bank statement showed a $2,955.82 balance. Melissa’s checkbook showed a $3,301.82 balance. Melissa placed a $510.19 deposit in the bank’s night depository on June 30. The deposit did not appear on the bank statement. The bank included two DMs and one CM with the returned checks: $690.65 DM for NSF check, $8.50 DM for service charges, and $400.00 CM (less $10 collection fee) for collecting a $400.00 non-interest-bearing note. Check number 811 for $110.94 and check number 912 for $82.50, both written and recorded on June 28, were not with the returned checks. The bookkeeper had correctly written check number 884, $1,000, for a new cash register, but she recorded the check as $1,069. The May bank reconciliation showed check number 748 for $210.90 and check number 710 for $195.80 outstanding on April 30. The June bank statement included check number 710 but not check number 748.

Answer 1

Kinko's checkbook balance: $3,301.82 +Collection on notes receivable: $400,00 -Collection fee: $10.00 Notes-fee- $390.00 Error in recording: $69.00 Balance (Notes-fee)+Error= $3,760.82 -NSF Check: $690.65 -Service Charge: $8.50 Total in deduct: $699.15 Reconciled Balance: $3,061.67

Kinko's bank balance: $2,955.82

+Deposit in transit: $510.19 Balance+DIT= $3,466.01 -Outstanding checks (total): $404.34 Reconciled balance: $3,061.67