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Bank Reconciliation

Bank Reconciliation - compute Cash account balance and bank statement balance before reconciling items Bronson 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 included in the cash account balance but not in the bank statement balance.
2. Checks issued but not returned with the bank statement were No. 673 for $2,940 and No. 687 for $5,100.
3. Bank service charges shown as a deduction on the bank statement were $240.
4. Interest credited to Branson Co.'s account but not recorded on the company's books amounted to $144.
5. Returned with the bank statement was a "debt memo" stating that a customer's check for $1,920 that had been deposited on May 23 had been returned because the customer's account was overdrawn.
6. During a review of the checks that were returned with the bank statement, it was noted that the account balance, the check had been erroneously recorded in the amount of $96.

Required:
a) What was the balance inn Branson Co.'s cash account before recognizing any of these reconciling items?
b) What was the balance shown on the bank statement before recognizing any of these reconciling items?

Solution Preview

Bank Reconciliation - compute Cash account balance and bank statement balance before reconciling items Bronson 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 ...

Solution Summary

This solution is comprised of a detailed explanation to answer what was the balance inn Branson Co.'s cash account before recognizing any of these reconciling items.

$2.19