Asked by Chyna Forrester on Jun 17, 2024
Verified
Using the following information, prepare a bank reconciliation for Miller Co. for August 31:
(a)The bank statement balance is $4,690.
(b)The cash account balance is $5,080.
(c)Outstanding checks amounted to $715.
(d)Deposits in transit are $1,020.
(e)The bank service charge is $40.
(f)A check for $72 for supplies was recorded as $27 in the ledger.
Outstanding Checks
Checks issued by a company that have been recorded in its books but have not yet been cashed by the recipient.
Deposits In Transit
Deposits in transit refer to money that has been received and recorded by a business but not yet by its bank, often because of time needed for the banking processing.
- Execute bank reconciliation procedures.
Verified Answer
MB
Mackenzie BrownJun 24, 2024
Final Answer :
? Miller Co. Bank Reconciliation August 31 Cash balance according to bark statement $4,690 Add deposits in transit not recorded by bank 1,020‾$5,710 Deduct outstanding checks 715 Adjusted balance $4,995‾ Cash balance according to company’s records $5,080 Deduct: Bank service charge $40 Error in recording 45 85 Adjusted balance $4,995‾\begin{array}{lr}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Miller~ Co.\\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bank ~Reconciliation\\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~August~ 31\\\hline\text { Cash balance according to bark statement } & \$ 4,690 \\\text { Add deposits in transit not recorded by bank } & \underline{1,020} \\& \$ 5,710 \\\text { Deduct outstanding checks } & {715} \\\text { Adjusted balance } & \underline{\$ 4,995} \\& \\\text { Cash balance according to company's records } & \$ 5,080\\\text { Deduct: Bank service charge } & \$ 40~~~~~~~~~~~~~~~\\\quad \text { Error in recording } & 45 ~~~~~~~~~~~~~85\\\text { Adjusted balance } &\underline{\$ 4,995}\end{array} Miller Co. Bank Reconciliation August 31 Cash balance according to bark statement Add deposits in transit not recorded by bank Deduct outstanding checks Adjusted balance Cash balance according to company’s records Deduct: Bank service charge Error in recording Adjusted balance $4,6901,020$5,710715$4,995$5,080$40 45 85$4,995
Learning Objectives
- Execute bank reconciliation procedures.
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