Question

The following information is available for McCarthy Corp. on June 30:

a.	The balance in cash as reported on the June 30 bank statement is $5,654.98.
b.	McCarthy made a deposit of $865 on June 30 that is not included on the bank statement.
c.	A comparison between the canceled checks returned with the bank statement and McCarthy’s records indicated that two checks had not yet been returned to the bank for payment. The amounts of the two checks were $236.77 and $116.80.
d.	The Cash account on the company’s books reported a balance on June 30 of $4,165.66.
e.	McCarthy rents some excess storage space in one of its warehouses, and the tenant pays its monthly rent directly to the bank for deposit in McCarthy’s account. The bank statement indicates that a deposit of $1,500 was made during the month of June.
f.	Interest earned on the checking account and added to McCarthy’s account during June was $11.75.
g.	Bank service charges were $15 for the month of June as reported on the bank statement.
h.	A comparison between the checks returned with the bank statement and the company’s records revealed that a check written by the company in the amount of $56 was recorded by the company erroneously as a check for $560.

	Required:
	Prepare a bank reconciliation for the month of June in good form.

Answer 1

Solution:

Bank Reconciliation Statement of McCarthy Corp. for the Month of June.

Particulars	$	$
Balance as per Bank Statement		5,654.98
Add:
1) Amount deposited but not included in the Bank statement	865.00
2) Bank service charges debited by the Bank	15.00	880.00
		6,534.98
Less:
1) Amount of Cancelled Checks not returned to the bank for payment	353.57
2) Amount directly deposited by the tenant in the Bank Account	1,500.00
3) Interest credited by the Bank	11.75
4) Check amount erroneously recorded in the Book of the company	504.00	(2,369.32)
Balance as per Company's Books		4,165.66