Question

Refer to the information given below:

The August 31 balance shown on the bank statement is $9,812. There is a deposit in transit of $1,244 at August 31. Outstanding checks at August 31 totaled $1,906. Interest credited to the account during August but not recorded on the company's books amounted to $110. A bank charge of $38 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $622 had been recorded as a disbursement of $355. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,345.
Required:
Prepare a bank reconciliation as of August 31 from the above information: (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
Balance per bank $ Balance per books $
Add: Add:
Less: Less:
Reconciled balance $ Reconciled balance $

Answer 1

Answer and Explanation:

The preparation of the bank reconcillation statement is shown below:

Balance per banks $9,812 Balance per books $9,345

Add: Add

Deposit in transit $1,244 Interest $110

Less: Less:

Outstanding checks -$1,906 Bank charges -$38

Error correction -$267

($622 - $355)

Reconciled balance $9,150 Reconciled balance $9,150