Bank Reconciliation A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger. ) Allez Company's monthly bank statement shows an account balance of $5968.78. The cash balance in its ledger is $5047.03. A thorough bank reconciliation investigation yields the following information: The bank erroneously deducted $365.99 from the company's account when the actual amount of a check written by the company was $325.99. The company erroneously recorded a check it wrote for $364.57 as $621.43. The company recently made a $602.99 deposit that has not yet been reflected on the bank statement. The bank collected a $490.00 note receivable, plus $9.00 in interest, which has not been recorded in the company's records. Bank service charges of $14.00 have been assessed to the company's account. There are two checks outstanding (not yet appearing on the bank statement) that were written for $752.30 and $544.83. A $474.25 check from one of the company's customers, Phil Conners, was returned by the bank because of insufficient funds (NSF) in the customer's account. Prepare the bank reconciliation for Allez Co. Enter amounts to the nearest cent. Allez Co. Bank Reconciliation January 31, 2014 Cash balance per bank statement $fill in the blank 31c8020d6fc203f_1 Add: Deposit not recorded by bank (deposit in transit) $fill in the blank 31c8020d6fc203f_3 Deduct: Check returned for insufficient funds fill in the blank 31c8020d6fc203f_5 fill in the blank 31c8020d6fc203f_6 $fill in the blank 31c8020d6fc203f_7 Deduct: Outstanding checks fill in the blank 31c8020d6fc203f_9 Adjusted balance $fill in the blank 31c8020d6fc203f_10 Cash balance per company records $fill in the blank 31c8020d6fc203f_11 Deduct: Proceeds of note collected by bank, including interest $fill in the blank 31c8020d6fc203f_13 Add: Error in recording check fill in the blank 31c8020d6fc203f_15 fill in the blank 31c8020d6fc203f_16 $fill in the blank 31c8020d6fc203f_17 Deduct: Check returned for insufficient funds $fill in the blank 31c8020d6fc203f_19 Deduct: Bank service charge fill in the blank 31c8020d6fc203f_21 fill in the blank 31c8020d6fc203f_22 Adjusted balance

Bank Reconciliation A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger. ) Allez Company's monthly bank statement shows an account balance of $5968.78. The cash balance in its ledger is $5047.03. A thorough bank reconciliation investigation yields the following information: The bank erroneously deducted $365.99 from the company's account when the actual amount of a check written by the company was $325.99. The company erroneously recorded a check it wrote for $364.57 as $621.43. The company recently made a $602.99 deposit that has not yet been reflected on the bank statement. The bank collected a $490.00 note receivable, plus $9.00 in interest, which has not been recorded in the company's records. Bank service charges of $14.00 have been assessed to the company's account. There are two checks outstanding (not yet appearing on the bank statement) that were written for $752.30 and $544.83. A $474.25 check from one of the company's customers, Phil Conners, was returned by the bank because of insufficient funds (NSF) in the customer's account. Prepare the bank reconciliation for Allez Co. Enter amounts to the nearest cent. Allez Co. Bank Reconciliation January 31, 2014 Cash balance per bank statement $fill in the blank 31c8020d6fc203f_1 Add: Deposit not recorded by bank (deposit in transit) $fill in the blank 31c8020d6fc203f_3 Deduct: Check returned for insufficient funds fill in the blank 31c8020d6fc203f_5 fill in the blank 31c8020d6fc203f_6 $fill in the blank 31c8020d6fc203f_7 Deduct: Outstanding checks fill in the blank 31c8020d6fc203f_9 Adjusted balance $fill in the blank 31c8020d6fc203f_10 Cash balance per company records $fill in the blank 31c8020d6fc203f_11 Deduct: Proceeds of note collected by bank, including interest $fill in the blank 31c8020d6fc203f_13 Add: Error in recording check fill in the blank 31c8020d6fc203f_15 fill in the blank 31c8020d6fc203f_16 $fill in the blank 31c8020d6fc203f_17 Deduct: Check returned for insufficient funds $fill in the blank 31c8020d6fc203f_19 Deduct: Bank service charge fill in the blank 31c8020d6fc203f_21 fill in the blank 31c8020d6fc203f_22 Adjusted balance

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.3E

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Bank Reconciliation

A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger. )

Allez Company's monthly bank statement shows an account balance of $5968.78. The cash balance in its ledger is $5047.03.

A thorough bank reconciliation investigation yields the following information:

The bank erroneously deducted $365.99 from the company's account when the actual amount of a check written by the company was $325.99.

The company erroneously recorded a check it wrote for $364.57 as $621.43.

The company recently made a $602.99 deposit that has not yet been reflected on the bank statement.

The bank collected a $490.00 note receivable, plus $9.00 in interest, which has not been recorded in the company's records.

Bank service charges of $14.00 have been assessed to the company's account.

There are two checks outstanding (not yet appearing on the bank statement) that were written for $752.30 and $544.83.

A $474.25 check from one of the company's customers, Phil Conners, was returned by the bank because of insufficient funds (NSF) in the customer's account.

Prepare the bank reconciliation for Allez Co. Enter amounts to the nearest cent.

Allez Co.
Bank Reconciliation
January 31, 2014
Cash balance per bank statement		$fill in the blank 31c8020d6fc203f_1
Add: Deposit not recorded by bank (deposit in transit)	$fill in the blank 31c8020d6fc203f_3
Deduct: Check returned for insufficient funds	fill in the blank 31c8020d6fc203f_5	fill in the blank 31c8020d6fc203f_6
		$fill in the blank 31c8020d6fc203f_7
Deduct: Outstanding checks		fill in the blank 31c8020d6fc203f_9
Adjusted balance		$fill in the blank 31c8020d6fc203f_10
Cash balance per company records		$fill in the blank 31c8020d6fc203f_11
Deduct: Proceeds of note collected by bank, including interest	$fill in the blank 31c8020d6fc203f_13
Add: Error in recording check	fill in the blank 31c8020d6fc203f_15	fill in the blank 31c8020d6fc203f_16
		$fill in the blank 31c8020d6fc203f_17
Deduct: Check returned for insufficient funds	$fill in the blank 31c8020d6fc203f_19
Deduct: Bank service charge	fill in the blank 31c8020d6fc203f_21	fill in the blank 31c8020d6fc203f_22
Adjusted balance		$fill in the blank 31c8020d6fc203f_23

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