QS 8-9 Bank reconciliation LO P3

Organic Food Co.'s cash account shows a $6,100 debit balance and its bank statement shows $5,580 on deposit at the close of business on August 31.

1. August 31 cash receipts of $1,840 were placed in the banks night depository after banking hours and were not recorded on the August 31 bank statement.
2. The bank statement shows a $180 NSF check from a customer; the company has not yet recorded this NSF check.
3. Outstanding checks as of August 31 total $1,720.
4. In reviewing the bank statement, an $140 check written by Organic Fruits was mistakenly drawn against Organic Foods account.
5. The August 31 bank statement lists $80 in bank service charges; the company has not yet recorded the cost of these services.

Prepare a bank reconciliation using the above information.

ORGANIC FOOD CO. Bank Reconciliation August 31 Bank statement balance Book balance Add: Add: Deduct: Deduct: Adjusted bank balance Adjusted book balance