14. Prepare the bank reconciliation statement using the following data and also record the necessary journal entry to reconcile the statement: Bank Balance = $4,487 Book Balance = $5,899 Interest income = $35 Deposit in transit = $1,590 NSF check = $586 Outstanding checks = $729

14. Prepare the bank reconciliation statement using the following data and also record the necessary journal entry to reconcile the statement: Bank Balance = $4,487 Book Balance = $5,899 Interest income = $35 Deposit in transit = $1,590 NSF check = $586 Outstanding checks = $729

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.

Question

14. Prepare the bank reconciliation statement using the following data and also
record the necessary journal entry to reconcile the statement:
Bank Balance = $4,487
Book Balance = $5,899
Interest income = $35
Deposit in transit = $1,590
NSF check = $586
Outstanding checks = $729

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