# Using the following information, prepare a bank reconciliation. • Bank balance: \$6,988 • Book balance: \$6,626 • Deposits in transit: \$1,600 • Outstanding checks: \$599 and \$1,423 • Bank charges: \$75 • Bank incorrectly charged the account \$75. The bank will correct the error next month. • Check number 2456 correctly cleared the bank in the amount of \$234 but posted in the accounting records as \$324. This check was expensed to Utilities Expense.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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Section
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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 8, Problem 11EA
Textbook Problem
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## Using the following information, prepare a bank reconciliation.• Bank balance: \$6,988• Book balance: \$6,626• Deposits in transit: \$1,600• Outstanding checks: \$599 and \$1,423• Bank charges: \$75• Bank incorrectly charged the account \$75. The bank will correct the error next month.• Check number 2456 correctly cleared the bank in the amount of \$234 but posted in the accounting records as \$324. This check was expensed to Utilities Expense.

To determine

Concept introduction:

Bank Reconciliation:

Bank reconciliation is the process in which the entity reconciles its cash entries in accounts with the entries in bank statement issued by the bank. The entity prepares bank reconciliation statement and it has two sides; Bank Side and Cash side.

To prepare:

The Bank Reconciliation Statement.

### Explanation of Solution

The Bank Reconciliation Statement is prepared as follows:

 Bank Reconciliation Statement Bank Side Book Side Balance as per Bank statement \$ 6,988 Balance as per Cash Book \$ 6,626 Add: Add: Deposit in...

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