Using the following information: a. The bank statement balance is $3,759. b. The cash account balance is $4,044. c. Outstanding checks amounted to $813. d. Deposits in transit are $1,025. e. The bank service charge is $64. f. A check for $67 for supplies was recorded as $58 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31.
Using the following information: a. The bank statement balance is $3,759. b. The cash account balance is $4,044. c. Outstanding checks amounted to $813. d. Deposits in transit are $1,025. e. The bank service charge is $64. f. A check for $67 for supplies was recorded as $58 in the ledger. Prepare a bank reconciliation for Candace Co. for May 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Using the following information:
a. The bank statement balance is $3,759.
b. The cash account balance is $4,044.
c. Outstanding checks amounted to $813.
d. Deposits in transit are $1,025.
e. The bank service charge is $64.
f. A check for $67 for supplies was recorded as $58 in the ledger.
Prepare a bank reconciliation for Candace Co. for May 31.
Candace Co.
Bank Reconciliation
May 31
Cash balance according to bank statement
Adjustments:
$4
Total adjustments
Adjusted balance
Cash balance according to company's records
Adjustments:
Total adjustments
Adjusted balance
$4
%24
%24
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98ea4724-1974-429c-9df5-159b3fa670d7%2F1aefd411-464c-46c9-b180-39cb930df166%2Fh86jb3o_processed.png&w=3840&q=75)
Transcribed Image Text:Using the following information:
a. The bank statement balance is $3,759.
b. The cash account balance is $4,044.
c. Outstanding checks amounted to $813.
d. Deposits in transit are $1,025.
e. The bank service charge is $64.
f. A check for $67 for supplies was recorded as $58 in the ledger.
Prepare a bank reconciliation for Candace Co. for May 31.
Candace Co.
Bank Reconciliation
May 31
Cash balance according to bank statement
Adjustments:
$4
Total adjustments
Adjusted balance
Cash balance according to company's records
Adjustments:
Total adjustments
Adjusted balance
$4
%24
%24
%24
%24
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
A bank reconciliation statement is prepared by almost every organization at a particular time. It is a statement that is required to match the cash balance with the bank balance. We need to adjust check outstanding, cheque deposited but not collected, directly deposited into Bank, NSF check, etc
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