Question

Problem 3 (20 pts) Using the following information, prepare the bank reconciliation for the Texas Company for March 31, 2016. Be sure to exclude items that do not belong on a bank reconciliation. a. The bank statement balance is $5,000. b. The cash account balance is $3,600. c. Outstanding checks totaled $1,800. d. Deposits in transit are $300. e. The bank service charge is $10. f. Interest reported on the bank statement was $20. g. A check for $100 was recorded as $10 in the ledger. h. A NSF check for $20 was returned with the statement.

Answer 1

Bank statement balance Add: Bank Service charges NSF Check Wrong drawn Bank Reconciliation 31-Mar $ 5,000 Book balance $ 3,600 Add: $ 10 Outstanding checks | $ 1,800 $ 20 Wrong record $ 30 $ 1,800 $ 5,030 $ 5,400 Less : $ (20) Deposit in transit $ (300) $ (20) Wrong record(10-100) $ (90) $ (390) $ 5,010 Adjusted Book balance $ 5,010 Less : Interest reported Adjusted bank balance Please provide the feedback with UPVOTE