ALIENWARE 3. Bank reconciliation At April 30, the balance of the Cash account ac

Question

ALIENWARE 3. Bank reconciliation At April 30, the balance of the Cash account according to the records of Zip company was $40,360. The April 30 bank statement showed a balance of $55,774. You are to prepare the bank reconciliation of Zip Company at April 30, using the following supplementary information: a. Deposit in transit at April 30, $10,320. b. Outstanding checks: no. 493, $3,360; no. 496 $1,820; no. 497, $1,235; no. 499, $2,810; no. 492, $9225. c. Service charge by bank, $74. d. A note receivable for $8,600 left by Zip Company with bank for collection that had been collected and credited to company's account. No interest involved. A check for $450 drawn by customer, Martin Able, but deducted from Zip's account by the bank and returned with the notation "NSF." e. Zp's check no. 480, issued in payment of $3,810 worth of office equipment, correctly written in the amount of $3,810 but erroneously recorded in Zip's accounting records as $3,018. ZIP COMPANY

Explanation / Answer

Balance as per Book          40,360 Less: Deposit in transit        -10,320 Add: outstanding checks          18,450 Less: Bank service chrges                 -74 Add: Note collected            8,600 Less: NSF Check              -450 Less: Clerical Error              -792 Balance as per Bank          55,774 Debit bank service charges        74 Debit Accounts receiveble      450 Debit Office equipments      792 Debit cash 7,284 Credit Notes receiveble 8600

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