Chapter 5, Problem 5.1ME

To determine

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

To Prepare:

The Bank Reconciliation statement

Answer to Problem 5.1ME

The Bank Reconciliation statement is as follows:

Happ Inc.
Bank Reconciliation Statement
As of Sept., 30
Bank Side			Book Side
Balance as per Bank statement		$ 22,260	Balance as per Cash Book		$ 24,860
Add:			Add:
Deposit in transit		$ 2,400	Interest earned		$ 80
Less:			Less:
Outstanding Checks		$ 760	NSF Checks	$ 900
			Bank Service Charges	$ 140	$ 1,040
Reconciled Balance		$ 23,900	Reconciled Balance		$ 23,900

Explanation of Solution

The Bank Reconciliation statement is explained as follows:

Happ Inc.
Bank Reconciliation Statement
As of Sept., 30
Bank Side			Book Side
Balance as per Bank statement		$ 22,260	Balance as per Cash Book		$ 24,860
Add:			Add:
Deposit in transit		$ 2,400	Interest earned		$ 80
Less:			Less:
Outstanding Checks		$ 760	NSF Checks	$ 900
			Bank Service Charges	$ 140	$ 1,040
Reconciled Balance		$ 23,900	Reconciled Balance		$ 23,900