Highlight Hotel deposits all cash receipts on the day when they are received and

Question

Highlight Hotel deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31. its Cash account shows a $18,393. debit balance. Highlight Hotel's June 30 bank statement shows $15,921 on deposit in the bank. Prepare a bank reconciliation for Highligh Hotel using the following information: Outstanding checks as of December 31 total $2,261. the December J1 bank statement included a $35 debit memorandum Check No. 2519, listed with the canceled utility bill on December 16. Hotel mistakenly recorded with Expense and a credit to Cash in the bank's nigh, depository after The December 31 cash receipts of $3,425 were plased in the banks after on the december 31 bank statement.

Explanation / Answer

Bank Reconciliation statement Balance as Per bank Statement 15921 Less Out Standing Checks -2261 ADD Deposit In transits 3425 Adjusted bank balance 17085 Balance as Cash Account 18393 Less Mistakes in recording 850-805 -45 Less Bank Charges -35 Less Return -1228 Adjusted cash balance 17085

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