Using the following information, prepare a bank reconciliation.• Bank balance: $6,988• Book balance: $6,706• Deposits in transit: $1,770• Outstanding checks: $599 and $1,423• Bank charges: $75• Bank incorrectly charged the account $75. The bankwill correct the error next month.• Check number 2456 correctly cleared the bank in theamount of $137 but posted in the accounting records as$317. This check was expensed to Utilities Expense.Bank ReconciliationBank Statement Balance at (date)Add:Less:Adjusted Bank BalanceBook Balance at (date)Add:Less:Adjusted Book Balance

Bank Reconciliation Statement (BRS) is prepared to match the balance of the bank statement with the…

Answered: Using the following information,…

Business

Accounting

Using the following information, prepare a bank reconciliation.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

Using the following information, prepare a bank reconciliation.
• Bank balance: $6,988
• Book balance: $6,706
• Deposits in transit: $1,770
• Outstanding checks: $599 and $1,423
• Bank charges: $75
• Bank incorrectly charged the account $75. 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.
Bank Reconciliation
Bank Statement Balance at (date)
Add:
Less:
Adjusted Bank Balance
Book Balance at (date)
Add:
Less:
Adjusted Book Balance

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