Question

On August 31 Year 1 the general ledger of a company shows a balance for cash of $7.934 Cash receipts yet to be deposited into the checking account total 53.328, and checks written by the academy but not yet processed by the bank total $1415 The company's balance of cash does not reflect a bank service fee of $34 and interest earned on the checking account of $45. These amounts are included in the balance of cash of $6,032 reported by the bank as of the end of August Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31 Year 1 (Amounts to be deducted should be indicated with a minus sign.) Bank's Cash Balance Per Bank Statement Bank Reconciliation August 31, Year 1 Company's Cash Balance Per General Ledger Bank Balance per Reconciliation Company Balance per Reconciliation

Answer 1

Answer
1
The Dean Acting Academy
Bank Reconciliation
August 31, 2018
Bank’s Cash balance		Company’s cash balance
Per bank statement	$ 6,032	Per general ledger	$ 7,934
Deposits outstanding	$ 3,328	Service fees	-$      34
Checks outstanding	-$ 1,415	Interest earned	$      45
Bank balance per reconciliation	$ 7,945	Company balance per reconciliation	$ 7,945

Date	Explanation	Debit	Credit
Aug-31-2018	Cash	$         45
	Interest Revenue		$     45
Aug-31-2018	Service Fee Expense	$         34
	Cash		$     34

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