Question

The following information is available to assist you in preparing a bank reconciliation for Racine Rentals on March 31:

1. The balance on the March 31 bank statement is $6,506.10.
2. Not included on the bank statement is a $423 deposit made by Racine's late on March 31.
3. A comparison between the canceled checks listed on the bank statement and the company records indicated that the following checks are outstanding at March 31:
   

   No. 112	$42.92
   No. 117	307.00
   No. 120	10.58
   No. 122	87.01

4. The bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicates that one such check in the amount of $45.00 was collected and deposited and a collection fee of $15.61 was charged.
5. Interest earned on the checking account and added to Racine's account during March was $4.30. Miscellaneous bank service charges amounted to $22.
6. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $1,250 appears on the bank statement in March but was never added to the customer's account on the company's books.
7. The comparison of checks cleared per the bank statement with those per the books revealed that the wrong amount was charged to the company's account for a check. The amount of the check was $990. The proof machine encoded the check in the amount of $909, the amount charged against the company's account.

Required:

Enter all amounts rounded to the nearest cent.

1. Determine the balance on the books before any adjustments as well as the corrected balance to be reported on the balance sheet.

Racine Rentals
Bank Reconciliation
March 31
Balance per bank statement, March 31			$
Add: Deposit in transit
Deduct:
Outstanding checks:
No. 112	$
No. 117
No. 120
No. 122		$
Bank error
Adjusted balance, March 31			$
Balance per books, March 31			$
Add: Customer check collected		$
Add: Interest earned on account
Add: Customer check not recorded
Deduct: Collection fee		$
Deduct: Bank service charges
Adjusted balance, March 31			$

Answer 1

Racine Rentals
Bank Reconciliation
March 31
Balance per bank statement, March 31			$ 6,506.10
Add: Deposit in transit			423.00
Deduct:
Outstanding checks:
No. 112	$ 42.92
No. 117	307.00
No. 120	10.58
No. 122	87.01	$ 447.51
Bank error		81	528.51
Adjusted balance, March 31			$ 6,400.59
Balance per books, March 31			$ 5,138.9
Add: Customer check collected		$  45.00
Add: Interest earned on account		4.30
Add: Customer check not recorded		1,250.00
Deduct: Collection fee		$ 15.61
Deduct: Bank service charges		22.00
Adjusted balance, March 31			$ 6,400.59

Amount to be shown in the Balance Sheet: $ 6,400.59