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# Bank Reconciliation and Balances

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.

#### Solution Preview

Let's take a look at each part of this problem. We can see where the bank balance was derived from.

We have:

Bank's ending balance 12,367.16
Less outstanding check 64.57
Less ...

#### Solution Summary

This solution provides a proper bank reconciliation.

\$2.19