A companys private cash books illustrated a debit balance of $4,000.00. However, the companys bank statement illustrated
Question:
A company’s private cash books illustrated a debit balance of $4,000.00. However, the company’s bank statement illustrated $4,270.00. These were discovered when comparing both accounts:
An amount of $160 for bank charges was entered into the bank account only.
A dividend of the amount of $250 was paid directly to the bank and not recorded in the private entities.
A standing order for paper of $700 was noted.
Checks of $1,650.00 were entered into the private entities’ records and deposited into the bank but have not been cleared.
The company paid $170 directly into the bank without any notice to the private accounting firm.
The bank rejected checks adding up to $140.
Required:
Make a bank reconciliation statement for the month.
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M