Question

2.   Use the following information to prepare a bank reconciliation for Magee Company at August 31, 2016:

  

(1)        Cash account balance, $18,273.40.

(2)        Bank statement balance, August 31, $16,315.00.

(3)        Deposits in transit, $2,800.00.

(4)        Outstanding checks, August 31, $1,850.80.

(5)        Service charge on bank statement not recorded in books, $44.00.

(6)        Bank error - another company’s check charged on Magee Company’s bank statement, $245.20.

(7)        Check for repairs expense, $1,680, incorrectly recorded in books as $960.00.

Answer 1

		Bank Reconciliation
		Magee company
Balance as per bank statement					16,315.0
Add:
Deposit in transit				2,800
Error made by bank				245.2	3,045.2
					19,360.2
less:
outstanding checks					1,850.80
Adjusted bank statement					17,509.4
Balance as per cash statement					18,273.40
less:
Bank service charge				44
error in recording cheque				720	764
Adjusted cash balance					17,509.40