Question

Brett White Company operates four bowling alleys. He just received the November 30 bank statement from City National Bank, and the statement shows an ending balance of $910. Listed on the statement are an EFT rent collection of $425, a service charge of $5, NSF checks totaling $80, and a $25 charge for printed checks. In reviewing his cash records, White identified outstanding checks totaling $445 and a deposit in transit of $1,790. During November, he recorded a $280 check by debiting Salary Expense and crediting Cash for $28. HIs Cash account shows a November 30 balance of $2,192.

Requirement: Prepare the bank reconciliation at November 30

Answer 1

Solution:

Brett white company
Bank reconciliation
Nov-30
Bank		910
Balance, November 30		1,790
Add: Deposit in transit		2700
Less: Outstanding checks		445
Adjusted bank balance, November 30		2255
Books:
Balance, November 30		2,192
Add: EFT Collection of rent		425
		2,617
Less: Correction of book error (2617 - 2255 - 80 - 25 - 5)	252
NSF Check	80
Cost of printed checks	25
Service charges	5
Adjusted book balance, November 30		362
		2,255