Murdstone Co Bank Reconciliation The company's accounting intern has prepared the end-of-January bank reconciliation from the bank statement, and is worried because the Adjusted Balance amounts do not agree. After reviewing the bank reconciliation, scroll down for the next steps in helping the intern Murdstone Co Bank Reconciliation January 31, 2015 1 Cash balance according to bank statement Deduct deposit of May 31, not recorded by bank $23.557.98 12.125.25 $11.452.73 * Add outstanding checks: No. 124 S 562.00 6 No. 125 42.00 No. 129 1.250.00 Adjusted balance 1.354.00 $12,786,73 5 10 Cash balance according to Murdstone Co. 11 Add check returned because of insufficient funds 551.606.88 23,475.40 11 $75,082.28 15 Deduct: Note and interest collected by bank $15,250.75 14 Bank service charge 350.00 Check My Work Murostone Co Bank Reconciliation 14 Bank service charge 350.00 9.000.00 24,600.75 15 Error in recording Check No. 123 16 Adjusted balance $50,481.53 You assist the intern to check source documents, and find that most of the dollar amounts are correct; however, two dollar amounts are incorrect. After reviewing the following table, scroll down for the next steps in helping the intern If "No," Corrected Amount Correct in Intern's Reconciliation? Yes Yes Yes No $24.00 Yes Item Cash balance according to bank statement Deposit of January 31, not recorded by bank Outstanding check No. 124 Outstanding check No. 125 Outstanding check No. 129 Cash balance according to Murdstone Co. Amount of check retumed because of insufficient funds Amount of note and interest collected by bank Bank service charge Company error in recording Check No 123 as 512,435.00 rather than the correct amount of $21,435.00 Yes Yes Yes No $35.00 Yes After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former correct After reviewing the following table, scroll down for the next steps in helping the intern. Item Correct in Intern's Reconciliation? If "No," Corrected Amount Yes Yes Yes No $24.00 Yes Cash balance according to bank statement Deposit of January 31, not recorded by bank Outstanding check No 124 Outstanding check No. 125 Outstanding check No. 129 Cash balance according to Murdstone Co. Amount of check returned because of insufficient funds Amount of note and interest collected by bank Bank service charge Company error in recording Check No. 123 as $12,435.00 rather than the correct amount of $21,435.00 Yes Yes Yes No $35.00 Yes After asking the intern to search for other errors by comparing her reconciliation to prior bank reconciliations prepared by the former accountant, you work together to compute the corrected Adjusted Balance Enter your answer with two decimal places Corrected Adjusted Balance amount
