You have received the bank statement for your company's account and need to reconcile it with your cash T-account. Your records show an ending balance for the month of $12,722.40 while the bank's records show an ending balance of $12,367.16.
The bank charged $8 in service fees and paid $26.05 in interest. All but three checks written during the month were processed by the bank without incident during the month. The three exceptions were:
1) Check #841 was correctly processed by the bank as $981.27 but was mistakenly recorded by you as $781.27.
2) Check #853 for $64.57 had not yet been processed by the bank.
3) Check #855 for $683.46 had not yet been processed by the bank.
All but two of the deposits made during the month were processed by the bank without incident.
The two exceptions were:
1) A customer check for $307.95, which had been deposited during the month, was returned NSF.
2) A deposit totaling $613.37 had not yet been processed by the bank.
Using the information provided above, prepare a bank reconciliation.
Let's take a look at each part of this problem. We can see where the bank balance was derived from.
Bank's ending balance 12,367.16
Less outstanding check 64.57
This solution provides a proper bank reconciliation.