Question

Using the following information:

a. The bank statement balance is $4,709.
b. The cash account balance is $5,162.
c. Outstanding checks amounted to $624.
d. Deposits in transit are $1,035.
e. The bank service charge is $33.
f. A check for $60 for supplies was recorded as $51 in the ledger.

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

Answer 1

Answer and Explanation:

The preparation of the bank reconciliation statement for August 31 is presented below:

Miller Co.

Bank reconciliation statement

August 31

Particulars Amount Particulars Amount

Bank cash balance $4,709 Company cash balance $5,162

Add: Less:

Deposits in transit $1,035 Bank service charges -$33

Less: Outstanding Error in recording -$9

Check -$624

Bank balance Company balance

After reconciliation $5,120 After reconciliation $5,120