Question

Bank Reconciliation. Prepare a bank reconciliation as of August 31 from the following information:

a. The August 31 balance shown on the bank statement is is $9050

b. There is a deposit in transit of $1300 at August 31

c. Outstanding checks at August 31 totaled $1620

d. Interest credited to the account during August but not recorded on the company's books amounted to $68

e.A bank Charge of $44 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived

f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $142 had been recorded as a disbursement of $412

g. The August 31 balance in the general ledger cash account, before reconciliation, is $8436

Answer 1

Bank reconciliation
August 31
Balance per bank		9050	Balance per books		8436
Add:			Add:
Deposit in Transit	1300		Interest earned	68
			Error in recording check	270
		1300			338
		10350			8774
Deduct:			Deduct:
Outstanding checks	1620		Bank Charge	44
		1620			44
Reconciled balance		8730	Reconciled balance		8730