II. Exercise Using the following information, prepare a bank reconciliation for

Question

II. Exercise Using the following information, prepare a bank reconciliation for Salem Co. for May 31, 2011. (Con la siguiente información, prepare la conciliación bancaria de Salem Co. para el 31 de mayo de 2011.)

(a) The bank statement balance is $2,597. (El balance de la cuenta bancaria es $2,597.)

(b) The cash account balance is $2,680 (Cash balance per book). (El balance de la cuenta de cash es $2,680.)

(c) Outstanding checks amounted to $703. (Los cheques pendientes de pago ascendieron a $703.)

(d) Deposits in transit are $732. (Los depósitos en tránsito son de $732.)

(e) The bank service charge is $25. (El cargo por servicio bancario es de $ 25.)

(f) Interest added to the checking account by the bank is $7. (Los intereses añadidos a la cuenta corriente del banco fueron de $ 7.)

(g) A check drawn for $59 was incorrectly charged by the bank as $95. (Un cheque por $59 fue cargado incorrectamente por el banco por $95.) Solution:

Salem Co. Bank Reconciliation May 31, 2010 Cash balance according to bank statement

Add:

Deduct:

Adjusted balance Cash balance according to depositor's records

Add:

Deduct:

Adjusted balance:

Explanation / Answer

SOLUTION

Bank Reconciliation Statement-

Particulars Amount ($) Cash balance according to bank statement 2,597 Add: Deposit in transit 732 3,329 Less: Outstanding checks (703) Adjusted balance 2,626 Cash balance according to company’s records 2,680 Add: Interest 7 2,687 Less: Bank service charge (25)   Error in recording (36) Adjusted balance 2,626

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