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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prepare the bank recocilation
Transcribed Image Text: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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