### Bank Reconciliation Exercise for StudentsThis exercise is designed to help students understand how to prepare a bank reconciliation statement. Pay close attention and follow the steps to reconcile the bank statement with the company's cash account.#### Provided Information:a. The bank statement balance is **$3,240**.b. The cash account balance is **$3,407**.c. Outstanding checks amounted to **$736**.d. Deposits in transit are **$698**.e. The bank service charge is **$196**.f. A check for **$32** for supplies was recorded as **$23** in the ledger.#### Task:Prepare a bank reconciliation for Miller Co. for August 31 using the information above.#### Bank Reconciliation for Miller Co.**Date: August 31**---**Cash balance according to bank statement:** $________________ **Adjustments:**1. ________________ : $______________2. ________________ : $______________3. ________________ : $______________ **Total adjustments:** $________________**Adjusted balance:** $________________---**Cash balance according to company’s records:** $________________**Adjustments:**1. ________________ : $______________2. ________________ : $______________3. ________________ : $______________**Total adjustments:** $________________**Adjusted balance:** $________________### Instructions:1. Start with the bank statement balance and make the necessary adjustments such as adding deposits in transit and subtracting outstanding checks.2. Adjust the company's cash balance to account for errors and bank charges.3. Ensure that the adjusted balances from the bank statement and the company's records are equal to verify the reconciliation.Understanding how to prepare a bank reconciliation is essential for keeping accurate financial records and ensuring that the company's ledger is in agreement with the bank's records.

Bank reconciliation refers to a statement prepared to reconcile differences between cashbook and…

a. The bank statement balance is $3,240. b. The cash account balance is $3,407. c. Outstanding checks amounted to $736. d. Deposits in transit are $698. e. The bank service charge is $196. f. A check for $32 for supplies was recorded as $23 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance

a. The bank statement balance is $3,240. b. The cash account balance is $3,407. c. Outstanding checks amounted to $736. d. Deposits in transit are $698. e. The bank service charge is $196. f. A check for $32 for supplies was recorded as $23 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance

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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