Question

Prepare the bank reconciliation for Sawyer Cup by determining the correct balances for both book and bank. Prepare any required journal entries.

1. Cash balance per bank 9136.
2. Cash balance per book 8490
3. July bank service charges not recorded by the depositor $25
4. Deposit in transit July31 $780
5. Error made by silver key in recording check 1156 to the utility company 245 instead of 345.
6. Outstanding check July 31 $1551.
Correct balances

Answer 1

Answer: Please see explanation column for answer

Explanation:A bank reconciliation is a document that compares records of the bank with a company's book account and corrects any discrepancies if any so as to ensure they are aligned. This helps to monitor and rule out fraud of any sort.

Bank reconciliation for Sawyer Cup for July

Ending Cash Balance from the Bank $9,136

add:

Deposit in transit + $780

Subtotal $9,916

Deduct:

Outstanding check - $1551

Adjusted Bank Balance $8,365

Ending Cash Balance from the Company's book $8,490

Deduct:

bank service charges -$25

Error made on check 1156 (345-245) -$100

Adjusted Book Balance $8,365