Using the following information, prepare a bank reconciliation. Bank balance: $6,988 Book balance: $6,540 Deposits in transit: $1,684 Outstanding checks: $579 and $1,423 Bank charges: $25 Bank incorrectly charged the account $25. The bank will correct the error next month. Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the following information, prepare a bank reconciliation.

  • Bank balance: $6,988
  • Book balance: $6,540
  • Deposits in transit: $1,684
  • Outstanding checks: $579 and $1,423
  • Bank charges: $25
  • Bank incorrectly charged the account $25. The bank will correct the error next month.
  • Check number 2456 correctly cleared the bank in the amount of $137 but posted in the accounting records as $317. This check was expensed to Utilities Expense.
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