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Bank reconciliation - Haverman Company

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Haverman Company maintains a checking account at the Commerce Bank. At July 31, selected data from the ledger balance and the bank statement are shown below.

Cash in Bank
Per Books Per Bank
Balance, July 1 $17,600 $16,800
July receipts 81,400
July credits 82,470
July disbursements 77,150
July debits


Balance, July 31



Analysis of the bank data reveals that the credits consist of $79,000 of July deposits and a credit memorandum of $3,470 for the collection of a $3,400 note plus interest revenue of $70.The July debits per bank consist of checks cleared $74,700 and a debit memorandum of $56 for printing additional company checks.
You also discover the following errors involving July checks: (1) A check for $230 to a creditor on account that cleared the bank in July was journalized and posted as $320. (2) A salary check to an employee for $255 was recorded by the bank for $155.
The June 30 bank reconciliation contained only two reconciling items: deposits in transit $7,000 and outstanding checks of $6,200.


Solution Summary

The solution explains how to prepare a bank reconciliation for Haverman Company