Bank reconciliation—compute Cash account balance and bank statement?Branson Co. received its bank statement for the month ending May 31, 2010, and reconciled the statement balance to the May 31, 2010, balance in the Cash account. The reconciled balance was determined to be $18,600. The reconciliation recognized the following items: 1. A deposit made on May 31 for $10,200 was... | |
Work it backwards:
Here's the reconciliation for the Branson Cash account:
Balance per Cash Account: $12,752
Less: Bank Service Charge $240 (Item 3)
Less: Returned Check $1,920 (Item 5)
Add: Interest Earned: $144 (Item 4)
Add: Difference in Check Recorded in Error $864 (Item 6)
Adjusted Balance of Cash Account: $11,600
The answer to Part A is $12,752 ($11,600 - $864 - $144 + $1,920 +
$240)
Here's the reconciliation of the Bank Balance
Balance Per Bank $9,440
Less: Outstanding Checks $8,040 (Item 2)
Add: Deposit in Transit: $10,200 (Item 1)
Adjusted Balance of Bank Account: $11,600
The answer to Part B is $ 9,440 (11,600 - $10,200 + $8,040)
