Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 19

Bank reconciliation Prepare a bank reconciliation as of August 31 from the following information:

a. The August 31 balance shown on the bank statement is $9,810.

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b. There is a deposit in transit of $1,260 at August 31.

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c. Outstanding checks at August 31 totaled $1,890.

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d. Interest credited to the account during August but not recorded on the compa­ny’s books amounted to $108.

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e. A bank charge of $36 for checks was made to the account during August. Although the company was expecting a charge, its amount was not known until the bank statement arrived.

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f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $631 had been recorded as a disbursement of $361.

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g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,378.