The following data were collected to use in reconciling the bank account for Anderson Co.: Balance per bank statement...……...........….$23,900 Balance per company records (cash acct)…..8,700 Bank service charges...................................................50 Deposits in transit..................................................5,500 Note collected by bank with $450 interest..9,450 Outstanding checks..............................................11,300 a. How much is the correct or adjusted bank balance? b. How much is the correct or adjusted book balance? c. Prepare any necessary journal entries based on the bank reconciliations.
The following data were collected to use in reconciling the bank account for Anderson Co.:
Balance per bank statement...……...........….$23,900
Balance per company records (cash acct)…..8,700
Bank service charges...................................................50
Deposits in transit..................................................5,500
Note collected by bank with $450 interest..9,450
Outstanding checks..............................................11,300
a. How much is the correct or adjusted bank balance?
b. How much is the correct or adjusted book balance?
c. Prepare any necessary
Bank reconciliations: Bank reconciliations is an process by which balance as per books is reconciled with the balance as per bank statement.
a.
| Particulars | Amount |
| Balance per bank statement | $23,900 |
| Add: Deposits in transit | $5,500 |
| Less: Outstanding checks | $(11,300) |
| Correct or adjusted bank balance | $18,100 |
B.
| Particulars | Amount |
| Balance per company records (cash acct) | $8,700 |
| Add: Note collected by bank with $450 interest | $9,450 |
| Less: Bank service charges | $(50) |
| Correct or adjusted book balance | $18,100 |
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