Question

The information below relates to the Cash account in the ledger of Swifty Corporation.

Balance September 1—$17,260;		Cash deposited—$64,410.
Balance September 30—$18,204;		Checks written—$63,466.

The September bank statement shows a balance of $17,222 on September 30 and the following memoranda.

Credits				Debits
Collection of $1,893 note plus interest $37		$1,930		NSF check: Richard Nance		$825
Interest earned on checking account		$52		Safety deposit box rent		$72

At September 30, deposits in transit were $4,850, and outstanding checks totaled $2,783.

(a)

Answer 1

Bank Reconciliation
At September 30
Bank statement balance	17,222	Book balance	18,204
Add:		Add:
Deposit in transit	4,850	note collected plus interest	1930
		Interest earned on checking	52
	22,072		20,186
Less:		Less:
Outstanding check	-2,783	Safety deposit rent	-72
		NSF Check	-825
Adjusted bank balance	$19,289	Adjusted book balance	$19,289

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