Rainbow Company's December 31, 2019 bank statement showed a balance of $53,410. Rainbow's December 31, 2019 cash balance was $45,800. Shown below is the information needed to prepare a bank reconciliation for Rainbow Company. (i) Deposits in transit amounted to $5,500. (ii) Outstanding checks at the end of December totaled $12,200. (iii) The bank service fee for December was $100. (iv) A customer payment for a $1,500 receivable was collected by the bank but not yet recorded by Rainbow Company. (v) A check issued for the purchase of office supplies was wrongly recorded for $890 but appeared on the bank statement at $980. (vi) A check of $400 was returned with bank statement because of insufficient fund in the customer's account. Required: Prepare a bank reconciliation for Rainbow Company at December 31, 2019.

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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.