BANK RECONCILIATION PRACTICE HANDOUT 2

PROBLEM 1

The balance shown on the bank statement of Downtown Central Bakery on November 30 was

$1,132.46. The balance shown on the check register was $896.91. The following checks were

outstanding:

#148

$26.62

#156

$100.16

#161

$77.17

#165

$29.10

There was a bank interest credit of $12.00 and a service charge of $9.50 that had not been entered

on Downtown Central Bakery's check register.

Using the data provided:

1. Prepare a bank reconciliation for the company.

PROBLEM 2

The June 30 bank statement for Fedders Fancy Foods Inc. shows that a customer's bad check in

the amount of $930 was returned and $30 returned check fee was charged against the company's

account by the bank. This is the first knowledge that company had that one of the checks deposited

was not good.

The balance shown on the bank statement of Fedders Fancy Foods Inc. was $22,327.14. The

balance shown on the check register was $24,696.83. The following checks were outstanding:

#363

$1,066.20

#387

$1,972.81

#396

$1,544.14

#397

$772.86

The following items also required adjustment:

Outstanding deposit:

$3,001.87

Automatic transfer to note payment:

$4,000.00

Bank Interest:

$276.17

Additional Bank Charges:

$40.00

Using the data provided:

1. Prepare a bank reconciliation for the company.

PROBLEM 3

The following information is available for Sagan Sugars Company as of June 30, 20XX:

a.

Cash on the books as of June 30 amounted to $64,997.98. Cash on the bank statement for

the same date was $77,858.32.

b.

A deposit of $5,432.56, representing cash receipts of June 30, did not appear on the bank

statement.

c.

Outstanding checks totaled $4,567.90.

d.

A check for $1,500.00 returned with the statement was recorded in the cash receipts journal

in error as $5,100.00. The check was for maintenance repairs.

e.

Bank service charges for June amounted to $50.00.

f.

The bank collected for the company $16,400.00 on a note. The face value of the note was

$16,000.00.

g.

An NSF check for $630.00 from a customer was returned with the statement. The bank

charged $35.00 fee.

h.

The bank mistakenly deducted a check for $350.00 drawn by Brown Corporation.

i.

The bank reported a credit of $290.00 for interest on the average balance.

j.

The bank paid $5,500 for the company's note. The face value of the note was $5,000.00.

Using the data provided:

1. Prepare a bank reconciliation for the company.