Question

Bank Reconciliation An accounting clerk for Muskegon Co. prepared the following bank reconciliation: Muskegon Co. Bank Reconciliation May 31, 2016 Cash balance according to company's records $6,910 Add: Outstanding checks $3,320 Error by Muskegon Co. in recording Check No. 2219 as $710 instead of $170 540 Note for $10,800 collected by bank, including interest 11,230 15,090 $22,000 $7,030 Deduct: Deposit in transit on May 31 30 7,060 Bank service charges $14,940 Cash balance according to bank statement data in this bank reconciliation, prepare a new bank reconciliation for Muskegon Co, using the format shown in the illu Muskegon Co Bank Reconciliation May 31, 2016

Answer 1

		Bank reconciliation
		May 31,2016
	cash balance according to bank statement						14,940
	add:Deposit in transit						7,030
							21,970
	less:outstanding checks						3,320
	Adjusted balance						18,650
	cash balance according to company's record						6,910
	error in recording check as $710 instead of $170					540
	note for $10,800 collected by bank including interest					11,230	11,770
							18,680
	less:Bank service charges						30
	Adjusted balance						18,650
b)	$18,650