The cash account for Recreational Systems at March 31, 20Y6, indicated a balance of $12,435. The bank statement indicated a balance of $27,150 on March 31, 20Y6. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals the following reconciling items:
a. Checks outstanding totaled $9,675.
b. A deposit of $4,175, representing receipts of March 31, had been made too late to appear on the bank statement.
c. The bank had collected $8,480 on a note left for collection. The face of the note was $8,000.
d. A check for $180 returned with the statement had been incorrectly recorded by Recreational Systems as $810. The check was for the payment of an obligation to Jones Co. for the purchase of office supplies on account.
e. A check drawn for $750 had been incorrectly charged by the bank as $570.
f. Bank service charges for March amounted to $75.

1. Prepare a bank reconciliation.
2. Illustrate the effects on the accounts and financial statements of the bank reconciliation.

  • CreatedMarch 11, 2014
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