erry Office Supply Cos bank statement dated Dec 31 2015 show

erry Office Supply Co.\'s bank statement dated Dec 31, 2015 shows a balance of $24,541.72. The company\'s ash records on the same date show a balance of $23,196.79. Following additional information is available: Following checks issued by the company to its customers are still outstanding: $320.00 No. 846 issued on Nov 29 No. 875 issued on Dec 26 $49.21 $275.00 $186.50 No. 878 issued on Dec 29 No. 881 issued on Dec 31 You need to total the four checks above and show as one figure on bank reconciliation. . A deposit of $400.00 made on Dec 31 does not appear on bank statement . An NSF check of $850 was returned by the bank with the bank statement t. The bank charged $50 as service fee. 5. Interest income earned on the company\'s average cash balance at bank was $1,724.22 . The bank collected a note receivable on behalf of the company. Amount received by the bank on the note was $550. This includes $50 interest income. The bank charged a collection fee of $10. . A deposit of $430 was incorrectly entered as $520 in the company\'s journal. It was a collection on account i. The company recorded the purchase of Equipment as $940 in error. The correct amount was $800. ). The banked incorrectly charged Russo\'s checking account with a check which belonged to another company- $500 Prepare a bank reconciliation statement using the above information.

Solution

Bank reconciliation Bank balance 24541.72 Outstanding checks Add Deposit in transit 400 Check number Incorrect check 500 846 320 25441.72 875 49.21 Less Outstanding checks 830.71 878 275 Adjusted bank balance 24611.01 881 186.5 830.71 Cash balance 23196.79 Add EFT deposit 540 Equipment error 140 Interest income 1724.22 2404.22 Less NSF 850 Service charges 50 Error in deposit 90 990 Adjusted cash balance 24611.01 Dec-31 Cash 550                Interest revenue 50                Notes receivable 500 Dec-31 Cash 1724.22                Interest revenue 1724.22 Dec-31 Cash 140           Equipment 140 Dec-31 Misc. Expense 50             Cash 50 Dec-31 Accounts payable 850             Cash 850 Dec-31 Accounts receivable 90              Cash 90 Dec-31 Misc. Expense 10              Cash 10