Question

The Cash account of First on AlertSecurity Systems reported a balance of $ 2 comma 430at December31​,2018.There were outstanding checks totaling $ 1 comma 000and a December31 deposit in transit of $ 200.The bank​ statement, which came from ParkCities​ Bank, listed the December31balance of $ 3 comma 910.Included in the bank balance was a collection of $ 690on account from Jane Lindsey​,a First on Alertcustomer who pays the bank directly. The bank statement also shows a $ 20service charge and $ 10of interest revenue that First on Alertearned on its bank balance. Prepare First on Alert​'sbank reconciliation at December31.

Answer 1

First on Alert​'s bank reconciliation at December 31, 2018

Cash Account First on Alert Security Systems

Balance , December 31,2018 $2,430

Add: Collection from Jane Lindsey $690

Add: Interest revenue $10

Less:-Service charges $20.00

Adjusted Cash Account balance December 31, 2018 $3,110.00

Bank Account at Park Cities

Balance , December 31,2018 $3,910

Add: Deposit in transit $200

Less: Outstanding cheque $1,000

Adjusted bank balance December 31, 2018 $3,110.00