Question

As of June 30, Year 1, the bank statement showed an ending balance of $17,616. The unadjusted Cash account balance was $16,893. The following information is available: 1. Deposit in transit, $2,785. 2. Credit memo in bank statement for interest earned in June, $10. 3. Outstanding check, $3,504. 4. Debit memo for service charge. $6. Required Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information, (Negative amounts should be indicated with minus sign.)

Bank Reconciliation
Unadjusted bank balance 6/30/Year 1
True cash balance 6/30/Year 1
Unadjusted book balance 6/30/Year 1
True cash balance 6/30/Year 1

Answer 1

cash account reconciliation:

cash account balance $16,893

+ earned interest $10

- bank fees ($6)

reconciled cash account $16,897

bank account reconciliation:

bank account balance $17,616

+ deposits in transit $2,785

- outstanding check ($3,504)

reconciled bank account $16,897

After the accounts have been reconciled, both must have the same balance. If not, then you must check your answer and recalculate until both match.