Sure! Let's approach this Bank Reconciliation step-by-step:
1. Bank Statement Balance (October 31):
- The balance according to the bank statement as of October 31 is [tex]$\$[/tex]5,217[tex]$.
2. Add Deposits in Transit:
- Deposits that have been made but not yet recorded by the bank are known as deposits in transit.
- The total deposits in transit is $[/tex]\[tex]$5,833$[/tex].
3. Deduct Outstanding Checks:
- Outstanding checks are checks that have been written and recorded in the company’s books but not yet cleared by the bank.
- The outstanding checks consist of:
- [tex]$\$[/tex]56.40[tex]$
- $[/tex]\[tex]$135.50$[/tex]
- [tex]$\$[/tex]443.10[tex]$
- The total of the outstanding checks is $[/tex]\[tex]$56.40 + \$[/tex]135.50 + \[tex]$443.10 = \$[/tex]635.00[tex]$.
4. Calculation of Adjusted Bank Balance:
- Now we calculate the adjusted bank balance using the following formula:
\[
\text{Adjusted Bank Balance} = \text{Bank Statement Balance} + \text{Deposits in Transit} - \text{Outstanding Checks Total}
\]
- Substituting the given values:
\[
\text{Adjusted Bank Balance} = \$[/tex]5,217 + \[tex]$5,833 - \$[/tex]635.00 = \[tex]$10,415.00
\]
5. Reconstructed Table:
```
Bank Reconciliation
October 31, 20--
Bank statement balance, October 31 $[/tex] 5,217
Add deposits in transit:
October 29 406
October 30 5,833
Deduct outstanding checks:
Check # Amount
- 56.40
- 135.50
- 443.10
Total Outstanding Checks 635.00
Adjusted bank balance [tex]$ 10,415.00
```
So, the adjusted bank balance on October 31 is $[/tex]\[tex]$10,415.00$[/tex].
