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The following data were accumulated for use in reconciling the bank account of Mathers Co. for July: 1. Cash balance according to the company's records at July 31 $20,010. 2. Cash balance according to the bank statement at July 31, $21,110. 3. Checks outstanding, $4,060. 4. Deposit in transit, not recorded by bank, $3,260. 5. A check for $480 in payment of an account was erroneously recorded in the check register as $840. 6. Bank debit memo for service charges, $60. a. Prepare a bank reconciliation

Sagot :

anthougo

The preparation of a bank reconciliation statement for Mathers Co. for July is as follows:

Bank Reconciliation Statement

At July 31

Cash balance per bank statement as at July 31, $21,110

Deposit in transit                                                     3,260

Outstanding checks                                              (4,060)

Balance as per adjusted cash balance             $20,310

What is bank reconciliation?

A bank reconciliation statement is a summary of banking and business cash transactions so that their balances can agree.

Bank reconciliations help the company to reconcile its bank account as per bank statements with its internal financial records.

The steps for preparing a bank reconciliation include:

  1. Discover the discrepancies in both statements.
  2. Adjust the cash balance with entries from the bank statement and other accounting errors.
  3. Adjust the bank statements with uncredited deposits, checks not yet presented, and accounting errors.
  4. Compare the end balances.

Data and Calculations:

Cash balance per Cash Account at July 31 $20,010

Cash balance per bank statement at July 31, $21,110

Checks outstanding, $4,060

Deposit in transit $3,260

Transposed payment $360 ($840 - $480)

Bank service charges $60

Adjusted Cash Balance per Cash Account:

Cash balance per Cash Account as at July 31 $20,010

Transposed payment                                               360

Bank service charges                                               (60)

Adjusted cash balance per cash account       $20,310

Learn more about preparing bank reconciliations at https://brainly.com/question/20349280

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