Question

Refer to the information given below: The August 31 balance shown on the bank statement is $9,822. There is a deposit in transit of $1,241 at August 31. Outstanding checks at August 31 totaled $1,883. Interest credited to the account during August but not recorded on the company's books amounted to $102. A bank charge of $35 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $632 had been recorded as a disbursement of $374. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,371. Required: Prepare a bank reconciliation as of August 31 from the above information.

Answer 1

Bank Reconciliation

Bank	Books
Balance, August 31	9,822	Balance, August 31	9,371
Add:		Add:
Deposit in transit	1,241	Interest revenue earned	102
		Bank collection of receivables
Less:		Less:
Outstanding checks	- 1,883
		Bank service charges	- 35
		Correction of book error	- 258
Adjusted bank balance	$9,180	Adjusted book balance	$9,180

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