Bank Reconciliation A bank reconciliation explains the causes for any difference

Question

Bank Reconciliation A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger. ) Allez Company's monthly bank statement shows an account balance of $6,644.32. The cash balance in its ledger is $5,744.75. A thorough bank reconciliation investigation yields the following information:

Prepare the bank reconciliation for Allez Co. Enter amounts to the nearest cent.

The bank erroneously deducted $320.67 from the company's account when the actual amount of a check written by the company was $300.67. The company erroneously recorded a check it wrote for $476.08 as $746.08. The company recently made a $645.44 deposit that has not yet been reflected on the bank statement. The bank collected a $400.00 note receivable, plus $15.00 in interest, which has not been recorded in the company's records. Bank service charges of $16.00 have been assessed to the company's account. There are two checks outstanding (not yet appearing on the bank statement) that were written for $810.22 and $538.58. A $452.79 check from one of the company's customers, Phil Conners, was returned by the bank because of insufficient funds (NSF) in the customer's account.

Explanation / Answer

Answer:

Cash balance as per banK 6644.32 Add: deposit 645.44 Less: Outstanding check 1348.8 Adjusted cash balance as per books 5940.96 Cash balance as per books 5744.75 Add: error in check 270 Collections of notes 415 Less: error in deduction 20 Less: NSF check 452.79 Bank charges 16 Adjusted cash balance as per books 5940.96

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