Question

Using the following information:

(a)	The bank statement balance is $5,389.
(b)	The cash account balance is $5,686.
(c)	Outstanding checks amounted to $736.
(d)	Deposits in transit are $961.
(e)	The bank service charge is $63.
(f)	A check for $50 for supplies was recorded as $41 in the ledger.

Required:

Prepare a bank reconciliation for Candace Co. for May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Deduct” or “Add” will automatically appear if it is required. Enter all amounts as positive values.

Prepare a bank reconciliation for Candace Co. for May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Deduct” or “Add” will automatically appear if it is required. Enter all amounts as positive values.

Candace Co.

Bank Reconciliation

1	Cash balance according to bank statement
2
3
4
5	Adjusted balance
6	Cash balance according to company’s records
7
8
9
10	Adjusted balance

Answer 1

Candace Co.
Bank Reconciliation
At May 31
Cash balance according to bank statement		5,389
Add deposit of May 31, not recorded by bank		961
		6,350
Deduct Outstanding checks		736
Adjusted balance		$5,614
Cash balance according to company's record		5,686
Deduct bank service charges	63
Deduct error in recording check	9
		72
Adjusted balance		$5,614

Kindly comment if you need further assistance.

Thanks‼!