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25 October, 03:39

18. EX. 08-160

Using the following information:

a. The bank statement balance is $4,690.

b. The cash account balance is $5,080.

c. Outstanding checks amounted to $715.

d. Deposits in transit are $1,020.

e. The bank service charge is $40.

f. A check for $72 for supplies was recorded as $27 in the ledger.

Prepare a bank reconciliation for Miller Co. for August 31.

Miller Co.

Bank Reconciliation

August 31

Cash balance according to bank statement

$

$

Adjusted balance

Cash balance according to company's records

ta

Adjusted balance

+3
Answers (1)
  1. 25 October, 04:57
    0
    Bank reconciliation statement = $4,995

    Explanation:

    Miller Corporation

    Bank Reconciliation Statement

    August 31, 20XX

    Cash balance according to bank statement $4,690

    Add: Deposit in-transits $1,020

    Less: Outstanding checks $ (715)

    $ 305

    Adjusted balance as per bank statement $4,995

    Cash balance according to company's book $5,080

    Less: Error in supplies recording $ (72 - 27) $ (45)

    Bank service charge $ (40)

    $ (85)

    Adjusted balance as per company's cash book $4,995

    Note: Deposit in-transit is added because the bank has already added the amount and the company does not know that, while bank deducts the outstanding checks as they are overdue.

    Again, as the service charge and error in supplies are already deducted from the bank without informing the company, the company has to deduct those from cash book.
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