Question

Using the following information:

a. The bank statement balance is $3,780.
b. The cash account balance is $3,772.
c. Outstanding checks amounted to $729.
d. Deposits in transit are $649.
e. The bank service charge is $63.
f. A check for $39 for supplies was recorded as $30 in the ledger.

Required:
Prepare a bank reconciliation for Miller Co. for August 31.

Answer 1

Answer and Explanation:

The preparation of the bank reconciliation statement is presented below:

Bank balance $3,780

Add: deposit in transit $649

Less: outstanding checks -$729

Adjusted bank balance $3,700

Cash balance $3,772

less: bank service charges $63

Less: error $9 ($39 - $30)

Adjusted cash balance $3,700

Hence, both cash balance and bank balance would be matched