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You have received the bank statement for your company’s account and need to reconcile it with your cash T account. Your records show an ending balance for the month of $12,792.40 while the bank’s records show an ending balance of $12,396.36. The bank charged $8.00 in service fees and paid $25.25 in interest. All but three checks written during the month were processed by the bank without incident during the month. The three exceptions were: |
| (1) |
Check #841 was correctly processed by the bank as $801.27 but was mistakenly recorded by you as $501.27. |
| (2) | Check #853 for $63.57 had not yet been processed by the bank. |
| (3) | Check #855 for $763.46 had not yet been processed by the bank. |
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All but two of the deposits made during the month were processed by the bank without incident. The two exceptions were: |
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A customer check for $325.95, which had been deposited during the month, was returned NSF. |
| (2) | A deposit totaling $614.37 had not yet been processed by the bank. |
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Using the information provided above, prepare a bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places. Omit the “$” sign in your response.) |
| Bank Statement | Company’s Books | ||
| Ending cash balance per bank | $ | Ending cash balance per books | $ |
| Additions | Additions | ||
| (Click to select) Error correction Bank service fees Deposit in transit NSF check Outstanding checks | (Click to select) Error correction Outstanding checks NSF check Interest received from bank Bank service fees | ||
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| Deductions | Deductions | ||
| (Click to select) Outstanding check #853 Outstanding check #855 NSF check Deposit in transit Interest received from bank | (Click to select) Bank service fees Error correction Deposit in transit NSF check Interest received from bank | ||
| (Click to select) Outstanding check #853 Interest received from bank Outstanding check #855 Deposit in transit NSF check | (Click to select) Interest received from bank NSF check Error correction Bank service fees Deposit in transit | ||
| (Click to select) NSF check Deposit in transit Interest received from bank Error correction Bank service fees | |||
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| Up to date ending cash balance | $ | Up to date ending cash balance | $ |
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