The following data were accumulated for use in reconciling the bank account of Z
ID: 2487594 • Letter: T
Question
The following data were accumulated for use in reconciling the bank account of Zek’s Co. for May 2016:
Exhibit 13
Must a bank reconciliation always balance (reconcile)?
Amount Descriptions
Adjusted balanceBank service chargeBank error in charging check as $50 instead of $500Bank error in charging check as $500 instead of $50Deposit in transit, not recorded by bankError in recording check as $50 instead of $500Error in recording check as $500 instead of $50Outstanding checks
A. Prepare a bank reconciliation, using the format shown in
Exhibit 13
. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. The word “Deduct:” or “Add:” will automatically appear if it is required.
ZEK’S CO.
Bank Reconciliation
May 31, 2016
1
Cash balance according to bank statement
2
3
4
5
6
7
Cash balance according to company’s records
8
9
10
11
B. If the balance sheet were prepared for Zek’s Co. on May 31, 2016, what amount should be reported for cash?
C. Must a bank reconciliation always balance (reconcile)?
No
Yes
1. Cash balance according to the company’s records at May 31, 2016, $22,110. 2. Cash balance according to the bank statement at May 31, 2016, $29,650. 3. Checks outstanding, $13,875. 4. Deposit in transit, not recorded by bank, $6,770. 5. A check for $50 in payment of an account was erroneously recorded in the check register as $500. 6. Bank debit memo for service charges, $15.Explanation / Answer
A)
B) $ 22545
C) NO
Bank Reconciliation Statement Particulars Amount $ Cash Balance according to bank statement 29,650 Less: Checks Outstanding 13,875 Less: A check was erroneously excess recorded 450 14,325 Add: Deposit in transit 6,770 Add: Service Charges 15 6,785 Cash Balance according to Company's records 22,110Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.