Question

Splish Brothers Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information.

Balance, August 1		$18,540		Bank debit memorandum:
August deposits		71,140		Safety deposit box fee		$ 50
Checks cleared in August		68,653		Service charge		75
Bank credit memorandum:				Balance, August 31		20,972
Interest earned		70

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,840; receipts $74,140; disbursements $73,545; and balance, August 31, $19,435. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,825 and outstanding checks of $4,525. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.

Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.)

SPLISH BROTHERS INC. Bank Reconciliation choose the accounting period                                                                      August 31, 2022For the Month Ended August 31, 2022For the Year Ended August 31, 2022
select an opening name for section one                                                                      Adjusted cash balance per bankDeposits in transitSafety deposit box rentInterest earnedError in recording checkCash balance per bank statementOutstanding checksService charge					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Interest earnedAdjusted cash balance per bankCash balance per bank statementDeposits in transitOutstanding checksService chargeSafety deposit box rentError in recording check				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Service chargeError in recording checkDeposits in transitInterest earnedCash balance per bank statementSafety deposit box rentAdjusted cash balance per bankOutstanding checks				enter a dollar amount
select a closing name for section one                                                                      Safety deposit box rentService chargeInterest earnedDeposits in transitOutstanding checksError in recording checkCash balance per bank statementAdjusted cash balance per bank					$enter a total amount for the first section
select an opening name for section two                                                                      Safety deposit box rentError in recording checkAdjusted cash balance per booksCash balance per booksInterest earnedOutstanding checksDeposits in transitService charge					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Adjusted cash balance per booksCash balance per booksInterest earnedSafety deposit box rentDeposits in transitOutstanding checksService chargeError in recording check				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Service chargeError in recording checkCash balance per booksAdjusted cash balance per booksInterest earnedDeposits in transitSafety deposit box rentOutstanding checks		$enter a dollar amount
	select a reconciling item                                                                      Error in recording checkInterest earnedOutstanding checksSafety deposit box rentDeposits in transitCash balance per booksService chargeAdjusted cash balance per books		enter a dollar amount
	select a reconciling item                                                                      Interest earnedSafety deposit box rentDeposits in transitOutstanding checksAdjusted cash balance per booksError in recording checkService chargeCash balance per books		enter a dollar amount
					enter a subtotal of the three previous amounts
select a closing name for section two                                                                      Safety deposit box rentAdjusted cash balance per booksCash balance per booksOutstanding checksInterest earnedDeposits in transitService chargeError in recording check					$enter a total amount for the second section

Answer 1

SPLISH BROTHERS INC.
Bank Reconciliation
August 31, 2022
Cash balance per bank statement		20972
Add: Deposits in transit		7825	=4825+(74140-71140)
		28797
Less: Outstanding checks		9777	=4525+(73545-68653)+360
Adjusted cash balance per bank		19020
Cash balance per books		19435
Add: Interest earned		70
		19505
Less:
Safety deposit box rent	50
Service charge	75
Error in recording check	360
		485
Adjusted cash balance per books		19020