Bank Reconciliation

Question

Prepare Bank Reconciliation for Snoopy Company for the month of June 30, 20XX

Bank Balance: $15,000

Book Balance: $13,000

Non-Sufficient Fund (NSF) : $175

Collection on Non Receivable $505

1. Note collected by the bank was $500, 3 month, 12% note. The bank charged a collection fee of $10. There are no accrued interest.
2. Outstanding checks June 30 totaled $4197
3. Deposit in transit June 30 Totaled $2500
4. ABC Company check for $352 cleared the bank on June 15. Snoopy Company recorded the check for $325 on their books.

Answer 1

Bank Balance $15,000

ADD:

Deposit in transit total $2,500

SUBTRACT:

Outstanding Check Total $4197

Adjusted Bank Balance $13,303 = ($15,000+$2500) - $4197

______________________________________________________________________________

Book Balance: $13,000

ADD:

Collection on note receivable: $505 = (500*12%) * (3/12) - 10

SUBTRACT:

NSF $175

Error in recording check $27 = ($352 - $325)

Adjusted Book Balance $13,303 = ($13,000+ $505) - $175 - $27

Adjusted Balances must equal each other in this case, they both equal $13,303