Question

4. The bank statement for Allen Co. indicates a balance of $8,000.00 on June 30. After...

4. The bank statement for Allen Co. indicates a balance of $8,000.00 on June 30. After the books for June have been adjusted, the cash account balance had a balance of $3,675.00. Prepare the bank reconciliation on the basis of the following information:

  1. Cash Receipts of $342 had been recorded on the books as $324,

  2. Deposits in transit not record by the bank, $500

  3. Bank service charges, $25

  4. Note collected by the bank and not yet notified to the company,$3,250 including

    interest

  5. NSF check from a customer, $218

  6. Checks outstanding, $1,800

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Answer #1

Solution:

Bank Reconciliation Statement
Allen Company
Bank Book
Balance, June 2020 $ 8000 Balance, June 2020 $ 3675
Add: Add:
Deposit in transit $ 500 Note Collected $ 3250
Error in recording (342-324) $ 18
$ 8500 $ 6943
Less: Less:
Outstanding Cheques $ 1800 Bank Charges $ 25
NSF Cheques from Customer $ 218
Monthly Note Payment
$ 1800 $ 243
Adjusted Bank Balance $ 6700 Adjusted Book Balance $ 6700
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