Question

 Organic Food Co.'s cash account shows a $6,200 debit balance and its bank statement shows $5,650 on deposit at the close of business on August 31.

 a. August 31 cash receipts of $1,940 were placed in the bank's night depository after banking hours and were not recorded on the August 31 bank statement.

 b. The bank statement shows a $190 NSF check from a customer, the company has not yet recorded this NSF check.

 c. Outstanding checks as of August 31 total $1,820.

 d. In reviewing the bank statement, an $150 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $90 in bank service charges; the company has not yet recorded the cost of these services.

 Prepare a bank reconciliation using the above information.

Answer 1

Bank Statement balance		5650	Book balance		6200
Add:			Add:
Deposit in transit	1940
Error in Check	150
		2090
Less:			Less:
Outstanding Checks	-1820		NSF Check	-190
		-1820	Bank Charges	-90	-280
Adjusted balance		5920	Adjusted balance		5920