Question

Part 2:

The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts.

Note: You must complete part 1 before completing part 2.

Based on the following data, prepare a bank reconciliation for December of the current year:

a. Balance according to the bank statement at December 31, $283,000.
b. Balance according to the ledger at December 31, $245,410.
c. Checks outstanding at December 31, $68,540.
d. Deposit in transit, not recorded by bank, $29,500.
e. Bank debit memo for service charges, $750.
f. A check for $12,700 in payment of an invoice was incorrectly recorded in the accounts as $12,000.

Kornett Company Bank Reconciliation December 31, 20Y5
Adjustments:
Total adjustments
Adjusted balance
Adjustments:
Total adjustments
Adjusted balance

Answer 1

Kornett Company
Bank Reconciliation
December 31, 20Y5
Cash balance according to bank statement		$ 283,000
Adjustments
Deposit in transit	$   29,500
Outstanding checks	$ (68,540)
Total adjustments		$ (39,040)
Adjusted cash balance		$ 243,960
Cash balance according to company's records		$ 245,410
Adjustments
Error in recording of check	$       (700)
Bank service charge	$       (750)
Total adjustments		$    (1,450)
Adjusted cash balance		$ 243,960

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