Repair Bank reconciliation: Information for the Bank Reconciliation Important: I
ID: 2454431 • Letter: R
Question
Repair Bank reconciliation:
Information for the Bank Reconciliation Important: It is assumed that The Widget Depot, Inc. receives one bank statement for the entire year. Bank Reconciliation at December 31, 2015: Books Bank Statement Unreconciled Balance at December 31, 2015 18,625.00 $ 28,250.00 Deposits in Transit $ 162.50 Outstanding Checks $ (9,787.50) Reconciled Balance at December 31, 2015 18,625.00 $ 18,625.00 Information from 2016 bank statement: Balance January 1, 2016 $ 28,250.00 Deposits $ 976,725.00 Checks Paid $ (988,075.00) Interest Earned in 2016 $ 87.50 Service Charges in 2016 $ (17.50) Balance - December 31, 2016 $ 16,970.00 Additional information: - Check 11023 was recorded on the books for $2,750 as part of selling expense. The correct amount of the check was $2,500 which is what the bank charged when the check cleared. - Check 11254 was correctly recorded on the books as administrative expense for $500. However, when the bank cleared the check, it charged the company $550.Explanation / Answer
Bank Reconciliation at December 31, 2015:
Journal Entry for adjustment entry in books
Reconciled Balance at December 31, 2016 would be reported in Books = $ 17020
Unreconciled Balance at December 31, 2016 in Bank Statement 16,970.00 Adjustments: Error in bank Statement (550-500) 50.00 Reconciled Balance at December 31, 2016 17,020.00