Need help with the Reconciliation. The cash account for Capstone Medical Co. at

Question

Need help with the Reconciliation.

The cash account for Capstone Medical Co. at November 30, 2016, indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on November 30, 2016. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

A. Checks outstanding totaled $30,050. B. A deposit of $19,720, representing receipts of November 30, had been made too late to appear on the bank statement. C. The bank collected $22,149 on a $20,700 note, including interest of $1,449. D. A check for $1,450 returned with the statement had been incorrectly recorded by Capstone Medical Co. as $145. The check was for the payment of an obligation to ABC Supply Co. for a purchase on account. E. A check drawn for $290 had been erroneously charged by the bank as $920. F. Bank service charges for November amounted to $40

Explanation / Answer

Balance as per cash Book 97456

Add: Checks outstanding 30050

Less : Deposits made too late (19720)

Add : Interest and note not recoded 22149

Less : Wrong Recording (1305)

Less : Bank Charges (40)

Less : Wrngly recorded (630)

Balance As per Bank Pass Book 127960

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