Marathon, Inc's April bank statement shows an April 30 balance if $15,360. Prior to reconciliation, its books show a cash balance of $16,530. The information below pertains to Marathon, Inc. Deposit in transit $2,400 Checks outstanding 1,395 Bank service charge 30 Error in Marathon's records understating cash disbursement 540 Check of another company charged erroneously against Marathon's bank account 345 Bank statement shows bank collected a n
Marathon, Inc's April bank statement shows an April 30 balance if $15,360. Prior to reconciliation, its books show a cash balance of $16,530. The information below pertains to Marathon, Inc.
| Deposit in transit | $2,400 |
| Checks outstanding | 1,395 |
| Bank service charge | 30 |
| Error in Marathon's records understating cash disbursement | 540 |
| Check of another company charged erroneously against | |
| Marathon's bank account | 345 |
| Bank statement shows bank collected a note receivable | |
| and interest income for Marathon | 750 |
The reconciled cash balance at April 30 on the bank reconciliation should be:
Bank reconciliation is the process of attempting to match the balances in an entity's accounting records for a cash account to the data collected on a bank statement. The goal of this process is to identify the differences between the two and make necessary changes to the accounting records. The data on the bank statement is the bank's record of all transactions affecting the entity's bank account during the previous month. A bank reconciliation should be performed at regular intervals for all bank accounts to ensure that a company's cash records are correct. Otherwise, it may discover that cash balances are much lower than expected, resulting in missed payments or overdraft fees. A bank reconciliation can also identify some types of fraud after the fact; this data can be used to improve cash receipt and payment controls.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
