The company’s accounting intern has prepared the end-of-January bank reconciliat
ID: 2552965 • 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, 20Y5
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
86.00
7
No. 129
1,250.00
1,398.00
8
Adjusted balance
$12,830.73
9
10
Cash balance according to Murdstone Co.
$51,567.88
11
Add check returned because of insufficient funds
23,475.40
12
$75,043.28
13
Deduct: Note and interest collected by bank
$15,250.75
14
Bank service charge
400.00
15
Error in recording Check No. 123
9,000.00
24,650.75
16
Adjusted balance
$50,392.53
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 following table, scroll down for the next steps in helping the intern.
Murdstone Co.
Bank Reconciliation
January 31, 20Y5
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 compute the corrected Adjusted Balance. Enter your answer with two decimal places. Corrected Adjusted Balance amount: $12,938.73 X PointsExplanation / Answer
Adjusted balance= $34,303.23
Explanation:
Murdstone Co. Bank Reconciliation January 31, 20Y5 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 Less outstanding checks: 5 No. 124 $ 62.00 6 No. 125 $ 68.00 7 No. 129 $ 1,250.00 $ (1,380.00) 8 Adjusted balance $ 34,303.23 9 10 Cash balance according to Murdstone Co. $ 51,567.88 11 Less: check returned because of insufficient funds $(23,475.40) 12 Add: Note and interest collected by bank $ 15,250.75 13 Less: 14 Bank service charge $ 40.00 15 Error in recording Check No. 123 $ 9,000.00 $ (9,040.00) 16 Adjusted balance $ 34,303.23