Question

problem 4 Prepare a bank a bank reconciliation dated December 31, 2017, for Welcome Inc. based on the following information. Balance per bank statement is $21,200.68. Balance per books is $20,559.40. The December bank statement indicated a service charge of $35. Cheque #1169 for $410.50 and cheque #1183 for $2.150,00 were not returned with the bank statement The bank had not received a deposit in transit of $3,443.22 when the bank statement was generated. A bank debit memo indicated an NSF cheque written by Bill Broke to Welcome Inc. on December 11, 2014, for $169. A bank credit memo indicated a bank collection of $1,700 and interest revenue of $28 on December 15, 2014.

Answer 1

Solution:

Welcome Inc.
Bank Reconciliation
Dec 31,2017
Bank Statement Balance	$21,200.68
Add: Deposit in transit	$3,443.22
	$24,643.90
Less: Outstanding checks (410.50+2150)	$2,560.50
Adjusted Bank Balance	$22,083.40
Cash Balance per Company's Records	$20,559.40
Add: bank collection	$1,700.00
Add: Interest Revenue	$28.00
	$22,287.40
Less: Bank Service Charges	$35.00
Less: NSF check	$169.00
Adjusted Cash Balance	$22,083.40