Question

17. The following information relates to the bank account of Doug's Sky Diving Supply Store on June 30. $5,327 9,265 Balance per bank statement Balance per books as of June 30 Outstanding checks: #1007 #1008 #1009 Deposits in transit $ 241 67 597 229 4.111 412 Bank service charges NSF check Credit memo for interest earned Error: Check written and recorded by bank as $454 was subtracted from the checkbook as $445. The check was used to pay the telephone bill. Required: Prepare a bank reconciliation as of June 30.

How do I create the reconciliation as well as show the check error for the telephone bill?

Answer 1

Credit Bank Reconciliation $ 5,327 Ending Cash Balance per Books Debit $ 412 |Ending Cash Balance per Bank $ Accounts tittle Accounts receivable Bank 9,265 $ 412 Add: Deposits in Transit Add: Interest $ 16 98 $ $ 229 4,111 Bank Service charges expense | $ Bank $ 4,340 $ 98 Less: Customer NSF $ (412) Telephone expense Bank 9 Less: Outstanding Checks # 1007 # 1008 # 1009 $ $ $ 241 67 597 Less : Bank Fee $ (98) $ ( Bank Interest Income Less: Error of recording telephone bill $ (9) $ 16 = Adjusted Bank Balance S 8,762 = Adjusted Book Balance S 8,762