Bank Reconciliation

Question

Ben Luna received his bank statement with a $27.04 fee for a bounced check (Non-sufficient funds). He has an $815.75 monthly mortgage payment paid through his bank. There was also a $3.00 teller fee and a check printing fee of $3.50. His ATM card fee was $6.40. There was a $530.50 deposit in transit. The bank showed a balance of $119.17. The bank paid Ben $1.23 in interest. Ben's checkbook shows a balance of $1,395.28. Check #234 for $80.30 and Check #235 for $28.55 were outstanding. Prepare Ben's bank reconciliation.

Answer 1

Hi Hannah.

A bank reconciliation is necessary here to match the cash balance as per Ben's checkbook to the cash balance as per the bank statement. The differences in unadjusted original cash balances are due to timing differences.

To prepare Ben's bank reconciliation, the below adjustments are needed:

Adjustments to Ben's checkbook:

1. -$27.04
2. -$815.75
3. -$3.00
4. -$3.50
5. -$6.40
6. $1.23

Ben's adjusted checkbook balance after above deductions and additions = $540.82

Adjustments to the Ben's bank balance:

1. +$530.50
2. -$80.30
3. -$28.55

Adjusted bank balance after above additions and deductions = $540.82

After the above reconciliation, the adjusted bank statement and checkbook balance is $540.82.

Hope this helps!