Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance
Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Karen Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
|
June 30 Bank Reconciliation
|
|||
|---|---|---|---|
| Balance per bank |
$25,200
|
||
| Add: Deposits in transit |
5,544
|
||
| Deduct: Outstanding checks |
(7,200
|
)
|
|
| Balance per books |
$23,544
|
|
|
Month of July Results
|
||||
|---|---|---|---|---|
|
Per Bank
|
Per Books
|
|||
| Balance July 31 | $31,140 | $33,300 | ||
| July deposits | 16,200 | 20,916 | ||
| July checks | 14,400 | 11,160 | ||
| July note collected (not included in July deposits) | 5,400 | |||
| July bank service charge | 54 | |||
| July NSF check from a customer, returned by the bank (recorded by bank as a charge) | 1,206 |
(a)
Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance.
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