Question

Due 14 TUL The following information is provided for Elli Dance Company as of June 30, 2012. 1. Cash Balance per Elli Dance Company's account with First Bank of Baltimore: $8579 2. Deposits in transit: $2400 3. Service charges levied by First Bank of Baltimore: $50 4. Cash Balance per Elli Dance Company's records: $9600 5. First Bank of Baltimore collected on a promissory note for Elli Dance in the amount of $425 plus $45 of interest. 6. Elli Dance Co.'s bookkeeper inadvertently recorded a check from customer, Danielle Johnson for $285. The amount of the check was $135. 7. First Bank of Baltimore incorrectly processed a check for $29 from Elise Dance Supply Company against Elli Dance Company's account. 8. The following checks issued by Elli Dance Company were not yet cashed as of June 30, 2012: Ck # 1106 $330 Ck # 1112 $808 Prepare a bank reconciliation Note 1: When deducting or subtracting amounts enter them as a negative number. Note 2: When entering the outstanding checks in the bank reconciliation enter them as one total added together.

Answer 1

Elli Dance Company

Bank Reconciliation

June 30,2012

Book Balance	9,600	Bank Balance	8,579
Add :		Add:
Note and interest collection	470	Deposit in transit	2,400
		Correction of bank error	29
Deduct :		Deduct :
Service charge	-50	Outstanding checks	-1.138
Correction of book error	-150
Adjusted Book Balance	$9,870	Adjusted Bank Balance	9,870

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