Question

Item #1.	The bank statement for August 2019 shows an ending balance of $3,490.
Item #2.	On August 31 the bank statement shows charges of $35 for the service charge for maintaining the checking account.
Item #3.	On August 28 the bank statement shows a return item of $100 plus a related bank fee of $10. The return item is a customer's check that was returned because of insufficient funds.
Item #4.	The bank statement shows a charge of $80 for check printing on August 20.
Item #5.	The bank statement shows that $8 was added to the checking account on August 31 for interest earned by the company during the month of August.
Item #6.	The bank statement shows that a note receivable of $1,000 was collected by the bank on August 29 and was deposited into the company's account. On the same day, the bank withdrew $40 from the company's account as a fee for collecting the note receivable.
Item #7.	The company's Cash account (per book) at the end of August shows a balance of $967.
Item #8.	During the month of August the company wrote checks totaling more than $50,000. As of August 31 $3,021 of the checks written in August had not yet cleared the bank and $200 of checks written in June had not yet cleared the bank.
Item #9.	The $1,450 of cash received by the company on August 31 was recorded on the company's books as of August 31. However, the $1,450 of cash receipts was deposited at the bank on the morning of September 1.
Item #10.	On August 29 the company's Cash account shows cash sales of $145. The bank statement shows the amount deposited was actually $154. The company reviewed the transactions and found that $154 was the correct amount.

Use the information above to do the bank reconciliation for the month of August.

Answer 1

Bank Reconciliation Statement
Month Ended August 31
Cash Balance as per bank statement	3490
Add: Deposit in Transit	1450
Less: Outstanding checks	-3221
Adjusted Cash Balance	1719
Cash balance as per books	967
Add: Note Collected	1000
Interest Collected	8
Error rectification	9
Less: Bank Service charges	-45	(35+10)
Less: NSF Check	-100
Less: Check printing charge	-80
Less: Note collection fee	-40
Adjusted Cash Balance	1719