Question

On April 1, 2019, Lester Company received a bank statement that showed a balance of $8,950. Lester showed an $8,000 checking account balance. The bank did not return check No. 115 for $750 or check No. 118 for $370. A $900 deposit made on March 31 was in transit. The bank charged Lester $20 for check printing and $250 for NSF checks. The bank also collected a $1,400 note for Lester. Lester forgot to record a $400 withdrawal at the ATM. Prepare a bank reconciliation.

Answer 1

Bank Reconciliation Statement

Balance at Bank as per updated Checking Account $8,730

Add Unpresented Cheques

Check No. 115 $750

Check No. 118 $370 $1,120

Less Lodgements not yet credited ($900)

Balance as per Bank Statement $8,950

Step-by-step explanation:

The first Step is to update the Bank Balance in the Cash Book as follows :

Debit :

Cash Balance before adjustments $8,000

Credit Transfers $1,400

Totals $9,400

Credit:

Printing Charges $20

Dishonored Cheques $250

Error; Atm Drawings $400

Balance as per updated Cash Book $8,730

Totals $9,400

Then, Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement

Balance at Bank as per updated Checking Account $8,730

Add Unpresented Cheques

Check No. 115 $750

Check No. 118 $370 $1,120

Less Lodgements not yet credited ($900)

Balance as per Bank Statement $8,950