Question

Baker Corp.'s cash ledger reports a balance of $45,260 for the month ending September 30, 2019
However, the bank statement shows that Baker's balance is $36,440.  Additional information
from September’s bank statement and company records reveals the following:
		Item					Amount
	a.	A deposit made by Baker is not reflected on the bank statement.					$ 5,520
	b.	The bank deducted service fees from Baker's account.					330
	c.	A customer's check that Baker deposited did not clear the bank (NSF check)					1,200
	d.	Checks written by Baker have not cleared the bank.					680
	e.	An automatic withdrawal for a vehicle lease payment was made on September 30					800
	f.	The bank paid Baker interest					90
	g.	Baker wrote a check but forgot to record it in the accounting system. The check has cleared the bank account					1,740
REQUIRED: Prepare a Bank reconciliation for September 30, 2019 for Baker Corp. in proper form.

Answer 1

Baker Corp.
Bank reconciliation
September 30, 2019
Balance Per Bank before adjustments		36,440
Add:
Deposit in transit		5,520
		41,960
Deduct
Outstanding checks		680
Adjusted Balance per Banks		41,280
Balance per Books before adjustments		45,260
Add:
Interest Income		90
		45,350
Deduct:
Service fees	330
NSF check	1,200
Lease payment	800
Unrecorded Check	1,740	4,070
Adjusted Balance per Books		41,280