PROBLEM Using the following information prepare a bank recon

PROBLEM Using the following information, prepare a bank reconciliation for Shredder Co. for May 31 of the current year: 1. (a) The bank statement balance is $3,012 (b) The cash account balance is $3,165 (c) Outstanding checks amounted to S590 (d) Deposits in transit are $704. (e) The bank service charge is S30. (f) A check for $76 for supplies was recorded as $67 in the ledger. ANS: Shredder Co. Bank Reconciliation May 31. 2019

Solution

Shredder Co.

Bank Reconciliation

May 31, 2019

Cash balance according to bank statement		$3,012
Add deposits in transit not recorded by bank		$704
		$3,716
Deduct outstanding checks		$590
Adjusted balance		$3,126
Cash balance according to company’s records		$3,165
Deduct: Bank service charge	$30
Error in recording	$9	$39
Adjusted balance		$3,126