Question

The accountant of BWS Company has compiled the following information for preparing a bank reconciliation for the company as of September 31, 2019: - A deposit of $9,366 on September 31 does not appear in the bank statement. - As of September 31, cash per the bank statement is $41,631. - Among the paid checks accompanied in the bank statement is the Check No: 113 for $1,512 which is paid by the bank erroneously although this check is not written by BWS Company. - As of September 31, cash per the accounting records is $48,609. - A credit memoranda is included in the bank statement for collection of rental revenue on the account of BWS during September, $135. - Two debit memoranda are included in the bank statement. One for service charge ($21) and the other for EFT payment of rent ($1,167). - The following checks have been issued by BWS Company but have not been paid by the bank as of September 31: no. 114 for $2,346; no.117 for $1,446; and no. 119 for $1,161. What is adjusted balance per company records?

Answer 1

BWS Company
Bank Reconciliation
At September 30, 2019
Bank statement balance	41,631	Book balance	48,609
Add:		Add:
Deposit in transit	9,366	Rental revenue	135
Correction of bank error	1,512
	52,509		48,744
Less:		Less:
Outstanding check:		Bank service charges	-21
114	-2,346	Rent expense	-1,167
117	-1,446
119	-1,161
Adjusted bank balance	$47,556	Adjusted book balance	$47,556

Adjusted balance per company records is $47,556.