Question

BANK RECONCILIATION XTRA CREDIT Balboa company sells refrigerators to the general public. On November 30,2009 Its cash ledger balance was 15,890. The bank balance was 17,420 A review of Balboa's transactions revealed the following: • Balboa wrote 75,000 worth of checks. However a check for $2,500 from September and one for $3200 from August had not cleared the bank as of November 30. Cash receipts total 5,200. An EFT for 1000 was made to Jones Inc. for refrigerators purchased on credit. A check that was written for 2300 was recorded by the bank for 300. A check for 4100 that was made out to Sampson Rentals for the monthly rent was recorded in the cash ledger for 1400. Johnson a customer made a $7500 loan payment in the bank. The customer signed a note when the loan was made. (Loan principal was 7000 and interest was 500) An NSF check for 3120 was returned and a $30 fee was charged to Balboa's account A check for 2,000 made out to Lewis Inc. was correctly recorded by the bank but was never recorded in the cash ledger. The bank paid $380 for interest earned on the checking account.

Answer 1

Bank Statement

Balance at : - $17420

Reconciling the items description	Amount($)
Checks not cleared from Bank	-5700
Cash Receipts	-5200
Incorrect recording of Check amount	-2000
Check returned charges	-30

Adjusted Bank Balance : - $ 14890

Cash Statement

Balance at :- $15890

Reconciling the items description	Amount($)
Incorrect recording of Check of Monthly Rent	-2700
Check returned	+3120
Check Return Charges	-30
Check made to Louis.Co	-2000
Interest Earned on Checking the Amount	+380

Adjusted Cash balance :- $14890