Instruction Using the following information: (a) (b) (c) (d) (e) (f) The bank st
ID: 2407176 • Letter: I
Question
Instruction Using the following information: (a) (b) (c) (d) (e) (f) The bank statement balance is $4,690. The cash account balance is $5,080. Outstanding checks amounted to $715 Deposits in transit are $1,020 The bank service charge is $40. A check for $72 for supplies was recorded as $27 in the ledger. Required: Prepare a bank reconciliation for Miller Co. for August 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Negative amounts should be entered with a minus sign.Explanation / Answer
Solution: Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement 4,690 Add deposits in transit not recorded by bank 1,020 5,710 Deduct outstanding checks 715 Adjusted balance 4,995 Cash balance according to company’s records 5,080 Deduct: Bank service charge 40 Error in recording 45 85 Adjusted balance 4,995 Working Notes: Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement 4,690 a Add deposits in transit not recorded by bank 1,020 b 5,710 c=a+b Deduct outstanding checks 715 d Adjusted balance 4,995 e=c-d Cash balance according to company’s records 5,080 f Deduct: Bank service charge 40 Error in recording 45 85 g Adjusted balance 4,995 h=f-g Error in recording, already $27 recorded , then balance ($72-$27 = $45) is to be adjusted Notes: Please entered data in your answering table as per their guidelines , solution will be done like above which is 100% correct. Please feel free to ask if anything about above solution in comment section of the question.