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Bank Reconciliation

The balance per the bank ststement on 10.31.06, was 18280. Outstanding checks were: n0.62 for 326.75, no.183 for 150.00, no. 284 for 253.25, no. 862 for 190.71, no. 863 for 226.80, and no. 864 for 165.28. Included with the statement was a credit memorandum of 300.00 indicating the collection of a note receivable for Stupendous Company by the bank on October 25. This memorandum has not been recorded by the company. The company ledger showed one cash account with a balance of 21892.72. The balance included undeposited cash on hand. Because of the lack of internal controls, Stickyfingers took for personal use all of the undeposited receipts in excess of 3795.51.

a.) Prepare a correct bank reconciliation( Hint: Deduct the amount of the theft from the adjusted balance per books).

Solution Summary

The solution explains how to prepare a correct bank reconciliation