Question

The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31​, 2018. There were outstanding checks totaling $ 500 and a December 31 deposit in transit of $ 400. The bank​ statement, which came from Park Cities​ Bank, listed the December 31 balance of $3,120. Included in the bank balance was a collection of $ 500 on account from Jane Lindsey​, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $ 10 of interest revenue that Gate City earned on its bank balance.

Requried:
Prepare Gate City​'s bank reconciliation at December 31.

Answer 1

Gate City Security Systems

Bank Reconciliation at December 31, 2018

Book:

Balance , December 31, 2018 $2,530

Add:

Collection from Jane Lindsey $500

Interest revenue $10

Less:

Service charges $20

Adjusted book balance December 31, 2018 $3,020

Bank:

Balance , December 31,2018 $3,120

Add:

Deposit in transit $400

Less:

Outstanding cheque $500

Adjusted bank balance December 31, 2018 $3,020