Question

E7-3A. Bank Reconciliation Use the following information to prepare a bank reconciliation for Fast Company at June 30:

 1. Balance per Cash account, June 30, $7,015.40.

 2. Balance per bank statement, June 30, $7,235.85.

 3. Deposits not reflected on bank statement, $975.

 4. Outstanding checks, June 30, S1,260.45.

 5. Service charge on bank statement not recorded in books, $50.

 6. Error by bank-Yertel Company check charged on Fast Company's bank statement, $375.

 7. Check for advertising expense, $260, incorrectly recorded in books as $620.

Answer 1

Errors in book are corrected in the books and omissions in bank statements are corrected in bank statements

Bank Reconciliation
Bank Statement Balance		7,235.85	Book Balance		7,015.40
Add:			Add:
Deposits not recorded	975.00		Error in recording	360.00	360.00
Error made	375.00	1,350.00
Deduct:			Deduct:
Outstanding checks	1,260.45	1,260.45	Service charge	50.00	50.00
Adjusted Bank Balance		7,325.40	Adjusted Book Balance		7,325.40