The company’s accounting intern has prepared the end-of-January bank reconciliat
ID: 2398685 • Letter: T
Question
The company’s accounting intern has prepared the end-of-January bank reconciliation from the bank statement, and is worried because the Adjusted Balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern.
Murdstone Co.
Bank Reconciliation
January 31, 2016
1
Cash balance according to bank statement
$23,557.98
2
Deduct deposit of May 31, not recorded by bank
12,125.25
3
$11,432.73
4
Add outstanding checks:
5
No. 124
$62.00
6
No. 125
57.00
7
No. 129
1,250.00
1,369.00
8
Adjusted balance
$12,801.73
9
10
Cash balance according to company’s records
$51,540.88
11
Add check returned because of insufficient funds
23,475.40
12
$75,016.28
13
Deduct: Note and interest collected by bank
$15,250.75
14
Bank service charge
200.00
15
Error in recording Check No. 123
9,000.00
24,450.75
16
Adjusted balance
$50,565.53
You assist the intern to check source documents, and find that most of the dollar amounts are correct; however, two dollar amounts are incorrect. After reviewing the table below, scroll down for the next steps in helping the intern.
After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former accountant, you work together to calculate the corrected Adjusted Balance. Enter your answer with two decimal places.
Corrected Adjusted Balance amount: _____?
Murdstone Co.
Bank Reconciliation
January 31, 2016
Explanation / Answer
Solution:
Murdstone Co. Bank Reconciliation 31-Jan-16 1 Cash balance according to bank statement $23,557.98 2 Add: deposit of May 31, not recorded by bank $12,125.25 3 $35,683.23 4 Deduct outstanding checks: 5 No. 124 $62.00 6 No. 125 $75.00 7 No. 129 $1,250.00 $1,387.00 8 Adjusted balance $34,296.23 9 10 Cash balance according to company’s records $51,540.88 11 Add: Note and interest collected by bank $15,250.75 12 $66,791.63 13 Less: check returned because of insufficient funds $23,475.40 14 Bank service charge $20.00 15 Error in recording Check No. 123 $9,000.00 $32,495.40 16 Adjusted balance $34,296.23