Patel Ltd.'s new accounting clerk could not get the bank reconciliation balanced. He needs your help and provided you with his bank reconciliation and all the information he used to prepare the bank reconciliation:

Additional Information:
1. The May 31 bank statement showed a cash balance of $6,750, EFT collection of $1,040, interest charges of $25, bank service charges of $35, an NSF cheque of $1,400, and an NSF fee of $20.
2. The book ledger showed a cash balance of $7,520. In addition, the book records showed that both cheque no. 578 for the amount of $1,320 and a deposit of $1,650 were not included in the bank statement.
Requirement
Prepare Patel Ltd.€™s bank reconciliation on May 31. What is the reconciled book balance?

Transcribed Image Text:

Bank Deposit EFT Collection Subtotal Subtract NSF cheque NSF fee Total Reconciled bank balance 6,750 Book 1,650 Cheque No. 578 (outstanding) 1,040 9,440 Subtotal 7,520 1,320 8,840 Subtract 1,400 Interest charges 20 Bank service charges 1,420 Total 8,020 Reconciled book balance 25 35 60 8,780