Bank Reconciliation CPA Exam Example

The Bicknell Plastics Company deposits all receipts and
makes all payments by check.
The following information is available from the cash records.
MARCH 31 BANK RECONCILIATION
Balance per bank	$25,600
Add: Deposits in transit	3,500
Deduct: Outstanding checks	-4,500
Balance per books	$24,600
	Month of April Results
	Per Bank		Per Books
Balance April 30	27,140		23,800
April deposits	8,700		8,400
April checks	9,100		9,200
April note collected (not included in
April deposits)	2,500		0
April bank service charge	60		0
April NSF check of a customer returned
by the bank (recorded by bank as
a charge)	500		0
Continued on following page

M. Bank Reconciliation CPA Exam Example (Continued)

(a) Calculate the amount of the April 30 deposits in transit and outstanding checks.

Show all of your work. Unsupported answers will not be graded.

1. Deposits in transit ________________

2. Outstanding checks ______________

(b) Create a bank reconciliation in good form.

Bank Balance			Book Balance
Add:			Add:
Less:			Less: