Question

Ассик UESTION2RANK RECONCILIATION ac Compy has a chala for the same date shows a balance of It was observed that checks in the amo has a cash hole in banks on Demer 31, in the amount of 54.450. The bank statement INSTI S400 that checks in the amount of s o had not yet cleared the bank. Also a deposit in the amount of e late on the l of Dember and was not showing up on the bank statement. A cheque no Smith our ( A C ) accounts payable in the amount of $250 was recorded correctly by the bank for i mistakenly orded in the books for only $150. A CORRECTION IS REQUIRED. A tenant's as paid directly to the tank and placed into the company account in the amount of $2.000 less a $50 e fee to the bank. The bank deducted $900 for interest on a loan, but this was not recorded in the books e bank had returned a chegue from Julie Selly stamped NSF in the amount of 5550. ABC company took out a en in the amount of $4,000 and the bank put the funds into ABC's chequing account, but the ABC accounts Clerk forgot to moved the loan. The bank had an additional debit memorandum of 530 to the company for other .P • DI miscellaneous service fees • St Prepare a un reconciliation in good forms of December 11 Que Book Balance Add: Deduct:

Answer 1

Solution ABC Company Bank Reconciliation December 31 $8,900 Book Balance Bank Balance Add: $4,450 Add: $400 EFT receipt of Rent less service fee Loan borrowing Deposit of December 31 $1,950 $4,000 $10,400 $9,300 Deduct: checks outstanding Deduct: $500 Error in posting ($250 $150) $100 $900 Interest on loan NSF check Bank service charge $550 $50 Adjusted Bank Balance $8,800 Adjusted Book Balance $8,800