Fred Midas, operates four bowling alleys. He just received the october 31 bank s

Question

Fred Midas, operates four bowling alleys. He just received the october 31 bank statement from City National Bank  and the statement shows an ending balance, of $9000. Listed on the statement are EFT rent collection of $400, a ervice charge of $12 , NSF checks totalling $74 and a $9 charge for  printed checks. In reviewing his cash records, Midas identifies oustanding checks totalling $467 and a deposit in transit #1788. During October he recorded a $ 290 check by debiting Salary Expese and crediting cash for $29. Midas Cash account shows an October 31 balance $2177. Prepare the bank reconcilation at October 31.

Explanation / Answer

Bank Reconciliation

31-Oct

Bank Reconciliation

31-Oct

Bank Statement balance $900 Add       Depositin transit $1,788 $2,688 Less      Outstanding checks $467 Adjusted Bankbalance $2,221 Book balance $2,177 Add EFT rent collected by bank $400 Error in recording check $29 $2,606 Less       Bankservice charges $12       NFSCheck returned $74      Miscellaneous charges $9       paidsalaries expense $290 Adjusted bookbalance $2,221 Note Bank statement balance is $900 not$9000.

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