1

2

Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Kaycee Sisters Inc. for August 20Y9 a. Cash balance according to the company's records at August 31, $19,810. b. Cash balance according to the bank statement at August 31, $21,100 c. Checks outstanding, $4,020 d. Deposit in transit, not recorded by bank, $3,230 e. A check for $170 in payment of an account was erroneously recorded by Kaycee Sisters Inc. as 710. f Bank debit memo for service charges, $40 Prepare a bank reconciliation, using the format shown in Exhibit 12. Kaycee Sisters Inc. Bank Reconciliation August 31, 20Y9 Cash balance according to bank statement Add deposit in transit, not recorded by bank Correct Deduct outstanding checks Adjusted balance Cash balance according to Kaycee Sisters Inc. Add error in recording check as $710 by the company instead of $170 Deduct bank service charges Adjusted balance Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Kaycee Sisters Inc. for August 20Y9: a. Cash balance according to the company's records at August 31, $14,190 b. Cash balance according to the bank statement at August 31, $18,330 c. Checks outstanding, $5,710 d. Deposit in transit, not recorded by bank, $2,150 e. A check for $180 in payment of an account was erroneously recorded by Kaycee Sisters Inc. as $810 f. Bank debit memo for service charges, $50 Record the effects on the accounts and financial statements of the company based upon the information above. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts Increase in Cash Balance Sheet Statement of Stockholders' Incone Assets Liabilities Cash Flows Equity Statement Cash No effect Accounts Payable+No effect Aug. 31 Statement of Cash Flows Income Statement Operating No effect No effect No effect