Question

 Organic Food Co.'s cash account shows a $6,900 debit balance and its bank statement shows $6,140 on deposit at the close of business on August 31.

 a. August 31 cash receipts of $2,640 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 $260 NSF check from a customer; the company has not yet recorded this NSF check.

 c. Outstanding checks as of August 31 total $2,520.

 d. In reviewing the bank statement, an $220 check written by Organic Fruits was mistakenly drawn against Organic Food's account. e. The August 31 bank statement lists $160 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

Organic Food Co.
Bank Reconciliation
Aug-31
Bank Statement Balance		6,140	Book Balance		6,900
Add:			Add:
Deposit of Aug.31	2,640
Bank Error	220
Deduct:			Deduct:
Outstanding Checks	2,520		NSF Check	260
			Bank Serive Charges	160
Adjusted Bank Balance		6,480	Adjusted Book Balance		6,480