Chapter 5, Problem 5.4.4P

To determine

Concept Introduction:

Bank reconciliation statement is basically defined as a statement which reconciles the bank balances with the cash balance. In other words, it reconciles the differences that exist between bank passbook and cash book.

The adjustment of an error done by the bank of recording the amount of canceled check as $\$500$ instead of $\$50$ in the bank reconciliation and the way to correct it.