
Concept explainers
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares
Requirement-1:
To Prepare:
The Bank reconciliation Statement.

Answer to Problem 44E
The Bank reconciliation Statement is as follows:
Johnson's Corporation Bank | |||||||||
Bank Reconciliation Statement | |||||||||
As of October 31 | |||||||||
Bank Side | Book Side | ||||||||
Balance as per Bank statement | $ 22,381 | Balance as per | $ 22,025 | ||||||
Add: | Add: | ||||||||
Deposit in transit | $ 855 | Check Error (973-379) | $ 594 | ||||||
Less: | Less: | ||||||||
Outstanding Checks | $ 1,222 | NSF Check | $ 480 | ||||||
Bank Service Charges | $ 125 | $ 605 | |||||||
Reconciled Balance | $ 22,014 | Reconciled Balance | $ 22,014 |
Explanation of Solution
The Bank reconciliation Statement is explained as follows:
Johnson's Corporation Bank | ||||||||
Bank Reconciliation Statement | ||||||||
As of October 31 | ||||||||
Bank Side | Book Side | |||||||
Balance as per Bank statement | $ 22,381 | Balance as per Cash Book | $ 22,025 | |||||
Add: | Add: | |||||||
Deposit in transit | $ 855 | Check Error | $ 594 | |||||
Less: | Less: | |||||||
Outstanding Checks | $ 1,222 | NSF Check | $ 480 | |||||
Bank Service Charges | $ 125 | $ 605 | ||||||
Reconciled Balance | $ 22,014 | Reconciled Balance | $ 22,014 |
Concept Introduction:
Bank Reconciliation:
Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side
Requirement-2:
To Indicate:
The amount of cash to be reported on October 31

Answer to Problem 44E
The amount of cash to be reported on October 31 balance sheet shall be $22,014.
Explanation of Solution
Johnson's Corporation Bank | ||||||||
Bank Reconciliation Statement | ||||||||
As of October 31 | ||||||||
Bank Side | Book Side | |||||||
Balance as per Bank statement | $ 22,381 | Balance as per Cash Book | $ 22,025 | |||||
Add: | Add: | |||||||
Deposit in transit | $ 855 | Check Error | $ 594 | |||||
Less: | Less: | |||||||
Outstanding Checks | $ 1,222 | NSF Check | $ 480 | |||||
Bank Service Charges | $ 125 | $ 605 | ||||||
Reconciled Balance | $ 22,014 | Reconciled Balance | $ 22,014 |
The amount of cash to be reported on October 31 balance sheet shall be $22,014
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