Prepare a correct bank reconciliation...?

Question

Mike Piller is unable to reconcile the bank balance at January 31. Mike's reconciliation is as follows.

Cash balance per bank $3,575.58

Add: NSF check 691.47

Less: Bank service charge 20.28

Adjusted balance per bank $4,246.77

Cash balance per books $3,873.03

Less: Deposits in transit 534.39

Add: Outstanding checks 948.69

Adjusted balance per books $4,287.33

1. Prepare a correct bank reconciliation. (Round answers to 2 decimal places, i.e. $25.00 List multiple entries in order of magnitude.)

2. Journalize the entries required by the reconciliation. (Round answers to 2 decimal places, i.e. $25.00)p

Answer 1

yu want us tu du yer homewerk for yu?

Answer 2

1. On a bank reconciliation, you always want to start with the balance on the company's books and make adjustments for any items that haven't been recorded. In this case, the NSF check and the bank service charges will have been recorded by the bank, but not on the books.

Balance per books: $3873.03

Minus: NSF check: <691.47>

Minus: Service Charge <20.28>

Adjusted Balance = 3161.28

For the bank adjustments, you will need to take into account any amounts that would have been recorded on the books but were not received (or posted) by the bank yet.

Balance per bank: 3575.58

Plus: Deposit in transit 534.39

Minus: Oustanding Checks <948.69>

Adjusted balance per bank = 3161.28

As you can, after the reconciliation, the two balances equal each other. This is the "true cash" balance.

2. You entries will be made to correct the BOOKS. Don't worry about the bank adjustments as they have already been recorded on the books.

Bank Service Charge Expense   20.28 (dr)

Cash   20.28 (cr)

Special Receivable - NSF Check 691.47 (dr)

Cash  691.47 (cr)

Hope this helps! I guess I like doing other people's work. At least now you will have an example for the next time you attempt a question like this.

Answer 3

did you even make an attempt at this?

why would you round money to two decimal places, this is bookkeeping. it is all adding and subtracting!

Answer 4

i'm sorry, what is your question? are you asking us to do it for you!

take it from someone in accounting, you'll learn more doing it yourself.