Question

Problem 7-14 (Part Level Submission) Presented below is information related to Sarasota Inc. Balance per books at October 31, $115,081.59; receipts $477,190.75; disbursements $453,457.24. Balance per bank statement November 30, $154,754.05. The following checks were outstanding at November 30. 1224 $4,497.05 1230 6,787.83 1232 5,844.16 1233 1,325.97 Included with the November bank statement and not recorded by the company were a bank debit memo for $75.35 covering bank charges for the month, a debit memo for $1,023.36 for a customer’s check returned and marked NSF, and a credit memo for $3,850.00 representing bond interest collected by the bank in the name of Sarasota Inc. Cash on hand at November 30 recorded and awaiting deposit amounted to $5,267.35. Prepare a bank reconciliation (to the correct balance) at November 30, for Sarasota Inc. from the information above.

Answer 1

Solution:

Sarasota Inc.
Bank Reconciliation - November 30
Bank's Cash balance		Company's cash balance
Particulars	Amount	Particulars	Amount
Ending balance as per Bank Statements	$154,754.05	Ending Balance as per cash books	$138,815.10
Additions:		Additions:
Outstanding cash receipt	$5,267.35	Bond Interest collection	$3,850.00
Deductions:		Deductions:
Outstanding Checks ($4,497.05 + $6,787.83 + $5,844.16 + $1,325.97)	$18,455.01	NSF Check	$1,023.36
		Bank Charges	$75.35
Up to date cash balance as per bank	$141,566.39	Up to date cash balance as per books	$141,566.39