1. What is the purpose of a Bank Reconciliation Statement?

2.Preparing a bank Reconciliation Statement:

The July 31 bank statement for Parkview Company indicated a cash balance of $5,000.17.

The cash ledger account on that date shows a balance of $4,262.83. Four outstanding checks totaled $717.75.

A $410.90 deposit made after banking hours on July 31 does not appear in the bank statement.

On July 30, the bank returned J.B. Balls NSF check for $50.25, received as payment of an account receivable.

The bank statement showed $24.74 interest earned on the bank balance for the month of July.

The bank collected a non-interest bearing note on July 22 for $500 and charged a $5 collection fee.

Check 893 for telephone expenses cleared the bank for $85 but was erroneously recorded in our books as $58.

The bank charged a July service charge of $12.00.

Here's an example of a Bank Reconciliation Statement.

You must used the same format to complete the assignment above LAIRD COMPANY Bank Reconciliation April 30,2019

Cash balance per bank statement 15,907.45

Add: Deposits in transit 2,201.40 $18,108.85 Less:

Outstanding checks No. 453 $3,000.00

No. 457 1,401.30

No. 460 1,502.70 5,904.00

Adjusted cash balance per bank $12,204.85

Cash balance per books $11,589.45

Add: Collection of note receivable $1,000 plus Interest earned $50,

less collection fee $15 $1,035.00 Error in recording check

no. 443 36.00 1,071.00 $12,660.45 Less: NSF check 425.60 Bank service charge 30.00 455.60

Adjusted cash balance per books $12,204.85