Question

The Cash account of

Safety FirstSafety First

Security Systems reported a balance of

$ 2 comma 640$2,640

at

July 31 comma 2014July 31, 2014.

There were outstanding cheques totalling

$ 1 comma 040$1,040

and

aa

July 31July 31

deposit in transit of

$ 300$300.

The bank​ statement, which came from Royal​ Bank, listed

aa

July 31July 31

balance of

$ 4 comma 125$4,125.

Included in the bank balance was a collection of

$ 750$750

on account from

Ryan SaarRyan Saar​,

a

Safety FirstSafety First

customer who pays the bank directly. The bank statement also shows a

$ 25$25

service charge and

$ 20$20

of interest revenue that

Safety FirstSafety First

earned on its bank balance. Prepare

Safety FirstSafety First​'s

bank reconciliation at

July 31 comma 2014July 31, 2014.

Answer 1

Safety First Security System
Bank Reconciliation Statement
July 31, 2014
Balance as per Bank account:		$4125
Add: Deposit in transit		300
		4425
Less: Outstanding checks		(1040)
Adjusted balance		$3385
Balance as per Cash account:		$2640
Add: Collected by bank	750
Interest revenue	20	770
		3410
Less: Service charge		(25)
Adjusted balance		$3385

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