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    Bank Reconciliation

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    The bank statements for Allen Co. indicates a balance of $8,000.00 on June 30, 2005. After the journals for June had been posted, the cash account had a balance of $3,675.00. Prepare a bank reconciliation on the basis of the following reconciling items:

    a) Cash sales of $342 had been erroneously recorded in the cash receipts journal as $324.
    b) Deposits in transit not recorded by bank, $500.00
    c) Bank debit memorandum for service charges, $25.00.
    d) Bank credit memorandum for note collected by bank, $2850, including $50 interest.
    e) Bank debit memorandum for $218.00 NSF (not sufficient funds) check from Alice Bell, a customer.
    f) Checks outstanding, $2,200.00.

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    Solution Preview

    The workings are in the file. A bank reconciliation is to reconcile the book and the bank balance. All we need to see is any transaction ...

    Solution Summary

    The solution explains how to prepare a bank reconciliation using the example of Allen Co.