Question

You have been provided with the following information for XYZ Corporation and its bank, ABC Trust Company. From the Bank Statement at the end of May 2002:

Ending balance	$30,399.00
Bank charges	26.10
NSF cheque	5,400.00
Interest collected on a note for the company by the bank	635.10

From the cash records of the company at the end of May 2002:

Cash on hand	$300.00
Ending balance, cash (including cash on hand)	52,500.00
Unrecorded deposits	21,000.00

Outstanding cheques:

No. 30	$1,800.00
No. 48	519.99
No. 50	410.01
No. 51	564.00
No. 55	642.00

Additional information: Error on cheque No. 12. The cheque was correctly written for $882but was shown as $828 on the bank statement.

(a) Based on the information above, prepare a proper/professional bank reconciliation

(b) Show any adjusting entries that would have to be shown on the books of XYZ Corporation.

Answer 1

Bank Reconciliation Statement

Explained: Balance as per cash records( 52500-300)= 52200