Question

Florence Company received a bank statement showing a balance of $12,600 on November 30, 2019. During the bank reconciliation process, Florence's accountant noted the following bank errors: 1. A check for $149 issued by Florentine, Inc., was mistakenly charged to Florence Company's account 2. Check 2782 was written for $200 but was paid by the bank as $1,200. 3. Check 2920 for $83 was paid by the bank twice. 4. A deposit for $580 on November 22 was credited by the bank for $850. Assuming outstanding checks total $1,950, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation FLORENCE COMPANY Bank Reconciliation Statement November 30, 2019 Balance on bank statement Additions Deductions

Answer 1

FLORENCE COMPANY
Bank Reconciliation
November 30,2019
Balance on bank statement		12,600
Additions:
Correction of bank error ( check wrong charged)	149
Correction of bank error ( check of $200, charged as $1,200)	1,000
Correction of bank error ( $83 check paid twice)	83	1,232
		$      13,832
Deductions:
Outstanding checks	-1,950
Correction of bank error	-270	-2,220
Adjusted bank balance		$      11,612

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