Question

Using the following information: The bank statement balance is $3,480. The cash account balance is $3,535. Outstanding checks amounted to $796. Deposits in transit are $729. The bank service charge is $113. A check for $40 for supplies was recorded as $31 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31.

Answer 1

Preparation of bank reconciliation is shown Below:-

Step-by-step explanation:

Miller co.

Bank Reconciliation

Aug-31

Cash Balance according to bank statement $3,480

Add: Deposits in transit not recorded by bank $729

Balance $4209

Less: Outstanding checks $796

Adjusted balance $3,413

Cash Balance according to company's records $3,535

Less: Bank service charge $113

Error in recording $9 $122

Adjusted balance $3,413