Question

Brett Brett Keenen Keenen Corporation operates four bowling alleys. The business just received the October October 31 31​, 2018 2018​, bank statement from City National​ Bank, and the statement shows an ending balance of $ 890 $890. Listed on the statement are an EFT rent collection of $ 395 $395​, a service charge of $ 6 $6​, NSF checks totaling $ 95 $95​, and a $ 26 $26 charge for printed checks. In reviewing the cash​ records, the business identified outstanding checks totaling $ 450 $450 and a deposit in transit of $ 1 comma 780 $1,780. During October October​, the business recorded a $ 310 $310 check by debiting Salaries Expense and crediting Cash for $ 31 $31. The​ business's Cash account shows an October October 31 31 balance of $ 2 comma 231 $2,231. Read the requirements LOADING... . Requirement 1. Prepare the bank reconciliation at October October 31 31. Prepare the bank portion of the​ reconciliation, followed by the book portion of the reconciliation.

Answer 1

Bank Reconciliation Statement

Cash balance, as per bank statement, Oct. 31	890
Add: Deposit in transit	1,780
Less: Outstanding checks	- 450
Adjusted cash balance	$2,220
Balance as per Company's record, Oct. 31	2,231
Add:  EFT rent collection	395
Less:NSF check	- 95
Bank service charges	- 6
Check book charges	- 26
Correction of book error	- 279
Adjusted cash balance	$2,220

Hence, adjusted cash balance to be reported = $2,220