Question

The Cash account of Safe and Secure Security Systems reported a balance of $2,560 at December 31, 2018. There were outstanding checks totaling $1,300 and a December 31 deposit in transit of $300. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $4,250. Included in the bank balance was a collection of $700 on account from Sally Jones, a Safe and Secure customer who pays the bank directly. The bank statement also shows a $30 service charge and $20 of interest revenue that Safe and Secure earned on its bank balance. Prepare Safe and Secure's bank reconciliation at December 31. Safe and Secure Security Systems Bank Reconciliation December 31, 2018 Bank: Balance, December 31, 2018 ADD: Deposit in transit LESS: Outstanding checks Adjusted bank balance, December 31, 2018 Book: Balance, December 31, 2018 ADD: Interest revenue LESS: Service charge Adjusted book balance, December 31, 2018

Answer 1

Bank Reconciliation Particulars Cash as per bank statement Less: Outstanding checks Add : Deposit in transit Adjustments Adjusted bank balance Amount Amount $ 4,250 $(1,300) $ 300 $ (1,000) $ 3,250 $ 2,560 Cash as per book records Less : Service charges Add Collection by bank Add Interest Revenue Adjustments Adjusted book balance $ $ $ (30) 700 20 $ 690 $ 3,250