Using the following information: Required: Labels and Amount Descriptions Bank R

Question

Using the following information:

Required:

Labels and Amount Descriptions

Bank Reconciliation

Prepare a bank reconciliation for Candace Co. for May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. “Deduct” or “Add” will automatically appear if it is required. Enter all amounts as positive values.

Candace Co.

Bank Reconciliation

1

Cash balance according to bank statement

2

3

4

5

Adjusted balance

6

Cash balance according to company’s records

7

8

9

10

Adjusted balance

(a) The bank statement balance is $2,936. (b) The cash account balance is $3,194. (c) Outstanding checks amounted to $465. (d) Deposits in transit are $655. (e) The bank service charge is $50. (f) A check for $97 for supplies was recorded as $79 in the ledger.

Explanation / Answer

Candace Co. Bank Reconcilliation Cash Balance according to bank Statement 2936 Less: Checks outstanding -465 Add: Deposit in Transit not recorded by bank 655 Add: Bank Service Charge 50 Add: Error in Recording 18 Cash Balance according to companys record 3194

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