The following information pertains to the bank transactions of Rawlins Company:

Question

The following information pertains to the bank transactions of Rawlins Company:

a. Cash on the books as of April 30 was $499. Cash as shown on the bank statement for the same date was $1,330.

b. A deposit of $160, representing cash receipts as of April 30, did not appear on the bank statement.

c. Outstanding checks totaled $240.

d. Bank service charges for April amounted to $9

e. The bank collected for Rawlins Company $840 (which includes $40 interest) on a note left for collection.

f.    An NSF check for $80 from a customer, Joe Beck, was returned with the statement.

Required:

1. Prepare a bank reconciliation for Rawlins Company as of April 30.

2. State the amount of cash that would appear on the balance sheet as of April 30.

Explanation / Answer

Solutoin:

Preparation of Bank Recouncilization Statement:

   Bank Recouncilization Statement

Particulars Amount Amount According to Cash Book, Bank Balance 499 Add: Cash Shown Bank Balance 1,330 Add: Interest 40 Add: Depost of Cash Represents 160 Add: Customer 80 Add: Outstanding Checks 240    Total Amount   1,850 Less: Bank Serice Charges 9 Less: Bank Not Let Collection 840 Less: Interest 40 Amount 800   Total Amount 809   According to Pass Book, Bank Balance 1,041

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