The bank reconciliation as of December 31, 2011, includes the following facts. C

Question

The bank reconciliation as of December 31, 2011, includes the following facts.


Cash balance per bank $ 14,800
Cash balance per books 16,100
Outstanding checks 1,980
Deposit in transit 2,440
Interest earned (on bank account) 33
Bank service charges (miscellaneous expense) 16

Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.)

1.
Use the preceding information to determine amounts for the following items.

a.
Correct (reconciled) ending balance of Cash, and the amount of the omitted check.


Reconciled balance $ ...................

Explanation / Answer

Bank- 14,800 + 2,440-1980=15,260 Books- 16,100 – 16 + 33=16,117 Omitted check 16,117-15,260=857

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