Question
The summary portion of Red Recreations October 31 bank statement is below. $17,825 Balance, October 1 $52,500 Deposits and other credits $67,750 Checks and other
The summary portion of Red Recreations October 31 bank statement is below.
$17,825 Balance, October 1
$52,500 Deposits and other credits
$67,750 Checks and other charges
$2,575 Balance, October 31
The bank statement detail shows that the bank charged Red Recreation for a $500 NSF and that the bank deposited a note collection for Red Recreation in the amount of $2,715. Also, Red Recreation earned $80 interest and paid a safety deposit fee of $75. These items are in the summary figures above.
Red Recreation finds two errors. In one case, the bank improperly charged Red Recreations account for a $425 check that should have been charged to another companys account. In the other case, the bank cleared a check for the correct amount of $350, but Red Recreation recorded the check in the company books as $530.
The September 30 bank reconciliation shows $6,250 deposits in transit and $4,100 outstanding checks.
Red Recreations account ledger for October shows:
$48,000 Deposits
$63,900 Checks
$4,075 Balance, October 31
REQUIRED:
Fill in the amounts for Red Recreations October 31 bank reconciliation in the template below. There are 20 items that require an entry.
NOTE: The template includes some line items that may be inappropriate. If a line item does not apply and/or the amount should be zero, enter 0. All items left blank will be marked as incorrect and result in points deducted.
You do not have to enter the correct cash balance on the book side. This amount should, of course, be the same as the correct cash balance on the bank side.
Format guidance: Enter whole numbers only. No dollar signs, commas, or decimal points.
Examples: 1000 or 20000
________ Balance per bank statement, October 31
________ Add: Bank error
________ Add: Deposits in transit
________ Add: Interest earned
________ Less: Bank error
________ Less: NSF
________ Less: Outstanding checks
________ Less: Safety deposit fee
__________ Correct cash balance, October 31
________ Balance per books, October 31
________ Add: Book error
________ Add: Deposits in transit
________ Add: Interest earned
________ Add: Note collection
________ Add: NSF
________ Less: Book error
________ Less: Note collection
________ Less: NSF
________ Less: Outstanding checks
________ Less: Safety deposit fee
__________Correct cash balance, October 31
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