Homework SourseBlairsville Corp prepares monthly bank reconciliations of it
Blairsville Corp. prepares monthly bank reconciliations of its checking account balance. The bank statement for July 2016 indicated the following:
An analysis of canceled checks and deposits and the records of Blairsville revealed the following items:
The correct amount of check #205 is $540, but it was recorded as a cash disbursement of $450. The check was issued to pay for merchandise purchases. The check appeared on the bank statement correctly.
a. Prepare a bank reconciliation at July 31, 2016, in proper form.
b. What amount would Blairsville report on its balance sheet at July 31, 2016, for cash?$
| Balance, July 31, 2016 | $63,400 |
| Service charge for July | 160 |
| Interest earned during July | 100 |
| NSF check from Black Corp. (deposited by Blairsville) | 1,150 |
| Note ($3,000) and interest ($80) collected for Blairsville from a customer of Blairsville’s | 3,080 |
Solution
Bank reconciliation:
b
Blaisville reports 60,550 in its balance sheet
| Particulars | Amount | Amount |
| Bank balance | 63,400 | |
| Add deposit in transit | 1,780 | |
| Less outstanding checks | -4630 | |
| Adjusted balance | 60,550 |
