Question

Branson Co. received its bank statement for the month ending May 31, 2019, and reconciled the statement balance to the May 31, 2019, balance in the Cash account. The reconciled balance was determined to be $36,400. The reconciliation recognized the following items:

1. A deposit made on May 31 for $22,700 was included in the Cash account balance but not in the bank statement balance.
2. Checks issued but not returned with the bank statement were No. 673 for $4,550 and No. 687 for $9,700.
3. Bank service charges shown as a deduction on the bank statement were $110.
4. Interest credited to Branson Co.'s account but not recorded on the company's books amounted to $88.
5. Returned with the bank statement was a "debit memo" stating that a customer's check for $3,240 that had been deposited on May 23 had been returned because the customer's account was overdrawn.
6. During a review of the checks that were returned with the bank statement, it was noted that the amount of check No. 681 was $680 but that in the company's records supporting the Cash account balance, the check had been erroneously recorded in the amount of $68.

Required:
Prepare the Bank reconciliation statement for the month ending May 31, 2019. (Total the entries of the same account together, when entering in the bank reconciliation statement.)

Answer 1

Balance per bank		27950	Balance per books		40274
Add:			Add:
Deposits in transit	22700		Interest earned	88
		22700			88
		50650			40362
Deduct:			Deduct:
Outstanding checks	14250		bank service charges	110
			Debit memo	3240
		14250	Error in recording check	612	3962
Reconciled balance		36400	Reconciled balance		36400