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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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
Transcribed Image Text: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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