Bank Reconciliation

A bank reconciliation explains the causes for any differences between a company's cash balance on its bank statement and its cash balance on the books (that is, in the ledger. )

Allez Company's monthly bank statement shows an account balance of $6127.23. The cash balance in its ledger is $5301.05.

A thorough bank reconciliation investigation yields the following information:

The bank erroneously deducted $346.70 from the company's account when the actual amount of a check written by the company was $326.70.

The company erroneously recorded a check it wrote for $468.19 as $671.41.

The company recently made a $633.64 deposit that has not yet been reflected on the bank statement.

The bank collected a $490.00 note receivable, plus $13.00 in interest, which has not been recorded in the company's records.

Bank service charges of $11.00 have been assessed to the company's account.

There are two checks outstanding (not yet appearing on the bank statement) that were written for $812.61 and $458.87.

A $486.88 check from one of the company's customers, Phil Conners, was returned by the bank because of insufficient funds (NSF) in the customer's account.

Prepare the bank reconciliation for Allez Co. Enter amounts to the nearest cent.

Allez Co.
Bank Reconciliation
January 31, 2014
Cash balance per bank statement		$
Add: Deposit not recorded by bank (deposit in transit)	$
Add: Bank error in charging check
		$
Deduct: Outstanding checks
Adjusted balance		$
Cash balance per company records		$
Add: Proceeds of note collected by bank, including interest	$
Add: Error in recording check
		$
Deduct: Check returned for insufficient funds	$
Deduct: Bank service charge
Adjusted balance		$