Question

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

Note: You must complete part 1 before completing part 2.
Based on the following data, prepare a bank reconciliation for December of the current year:
a. Balance according to the bank statement at December 31, $283,000.
b. Balance according to the ledger at December 31, $245,410.
c. Checks outstanding at December 31, $68,540.
d. Deposit in transit, not recorded by bank, $29,500.
e. Bank debit memo for service charges, $750.
f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.
Enter all amounts as positive numbers.
Kornett Company
Bank Reconciliation
December 31, 2014
Subtotal
Adjusted Balance
Deduct
Adjusted Balance

Answer 1

Balance as per bank statement $243,960

Balance as per ledger $243,960

Step-by-step explanation:

Preparation of a bank reconciliation for December of the current year

KORNETT COMPANY Bank Reconciliation

December 31, 2014

Balance as per bank statement at December 31 $283,000

Add deposit in transit $29,500

Less check outstanding ($68,540)

Adjusted balance $243,960

Balance as per ledger at December 31 $245,410

Less bank service charges ($750)

Less Error in recording in check ($700)

($12,700-$12,000)

Adjusted balance $243,960

Therefore bank reconciliation for December of the current year will be :

Balance as per bank statement $243,960

Balance as per ledger $243,960