Jansen Company\'s general ledger showed a checking account balance of $23,920 at

Question

Jansen Company's general ledger showed a checking account balance of $23,920 at the end of May 2016 The May 31 cash receipts of $2,350, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2016, showed bank service charges of $39. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $1,900 Required: Prepare a bank reconciliation as of May 31,2016. [Hint You will need to compute the balance that would appear on the bank statement.] Bank Reconciliation Bank Balance to Corrected Balance Balance per bank statement Corrected cash balance Book Balance to Corrected Balance Balance per books Corrected cash balance

Explanation / Answer

SOLUTION:

Bank Balance to Corrected Balance Balance per bank statement 23,431 Add: Deposits outstanding 2,350 Less: Checks outstanding -1900 Corrected cash balance 23,881 Book Balance to Corrected Balance 23,920 Less: Service charges -39 Corrected cash balance 23,881 Explanation: Balance per books 23,920 Deduct: Deposits outstanding -2350 Add: Checks outstanding 1900 Deduct: Bank service charges -39 Balance per bank 23,431

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