Question

1.

Lopez Hair Designs has a company (book) balance of $31,600 and a bank balance of $25,100. The following additional information is available:

Deposits in Transit:                                                    $15,000

Outstanding checks:                                                      4,600

Notes Receivable collected by the bank                    5,500

Not sufficient funds (NSF)                                            1,500

Bank fees                                                                           100

Prepare a reconciliation:

Adjusted balance per bank	Adjusted balance per books

2.

Jones Corporation has a book balance of $89,848 and a bank balance of 92,800. The following additional information is available:

Deposits in transit   $20,000

Outstanding checks $12,000

Notes Receivable collected by the bank $10,800

Bank fees    $100

Jones Corporation incorrectly recorded on their books a check for $680 that should have been recorded at $428.

Prepare a reconciliation.

Adjusted balance per bank	Adjusted balance per books

Answer 1

Errors in book are corrected in the books and omissions in bank statements are corrected in bank statements

Bank Reconciliation
Bank Statement Balance		25,100	Book Balance		31,600
Add:			Add:
Deposits in Transit	15,000	15,000	Note receivable collected by Bank	5,500	5,500
Deduct:			Deduct:
Outstanding checks	4,600	4,600	Non Sufficient Funds	1,500
			Bank Fees	100	1,600
Adjusted Bank Balance		35,500	Adjusted Book Balance		35,500

2.

Bank Reconciliation
Bank Statement Balance		92,800	Book Balance		89,848
Add:			Add:
Deposits in Transit	20,000	20,000	Note receivable collected by Bank	10,800
			Error in Recording	252	11,052
Deduct:			Deduct:
Outstanding checks	12,000	12,000
			Bank Fees	100	100
Adjusted Bank Balance		100,800	Adjusted Book Balance		100,800