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25 April, 07:12

This information relates to the Cash account in the ledger of Howard Company.

Balance September 1-$16,400; Cash deposited-$64,000

Balance September 30-$17,600; Checks written-$62,800

The September bank statement shows a balance of $16,500 at September 30 and the following memoranda

Credits Debits

Collection of NSF

electronic funds transfer $1,830 check: $560

Kane Safety

Interest earned on checking account 45 deposit 60

box

rent

At September 30, deposits in transit were $4,738 and outstanding checks totaled $2,383.

Prepare the bank reconciliation at September 30, 2017.

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  1. 25 April, 07:14
    0
    Bank Reconciliation Statement as at September 30

    Balance as per Cash Book (Updated) $18,855

    Add Unpresented Cheques $2,383

    Less Lodgements not yet credited ($4,738)

    Balance as per Bank Statement $16,500

    Explanation:

    The first step in preparing a Bank Reconciliation Statement is to Update the Cash Balance in the Company's records as follows:

    Debit:

    Balance as at September 30 $17,600

    Interest Earned $45

    Funds Transfer $1,830

    Totals $19,505

    Credit:

    Balance as per Cash Book (updated) $18,855

    NSF $650

    Totals $19,505

    The next step is to prepare a Bank Reconciliation Statement

    Bank Reconciliation Statement as at September 30

    Balance as per Cash Book (Updated) $18,855

    Add Unpresented Cheques $2,383

    Less Lodgements not yet credited ($4,738)

    Balance as per Bank Statement $16,500
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