Question

The following information pertains to Cullumber Company.

1. Cash balance per books, August 31, $7,374.
2. Cash balance per bank, August 31, $7,338.
3. Outstanding checks, August 31, $690.
4. August bank service charge not recorded by the depositor $42.
5. Deposits in transit, August 31, $2,810.
In addition, $2,126 collected for Cullumber Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Cullumber Company
Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.)

Answer 1

Cullumber Company

Bank Reconciliation

August 31, 2022

Cash balance as per bank $7,338

Add: Deposit in transit $2,810

$10,148

Less: Outstanding checks $690

Adjusted Cash Balance $9,458

Cash balance per books $7,374

Add: Electronic fund transfer received $2,126

by bank

$9,500

Less: Bank service charges $42

Adjusted Cash balance $9,458