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5 June, 03:34

Xenon Inc.'s August 31 bank statement had an ending cash balance of $2,567. On August 31, Xenon's general ledger showed a balance of $860. After comparing the general ledger to the bank statement the following items were noted: Outstanding checks: $2,250 Interest paid by the bank: $12 An NSF check from one of Xenon's customers: $32 Deposits in transit: $1,900 A service fee charged by the bank: $8 A direct deposit from a customer: $1400 Check #345 was written at Acme Insurance; the amount of the check was $615. It was recorded in the general ledger for $600.

Prepare a bank reconciliation for Xenon, Inc.

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  1. 5 June, 06:41
    0
    Bank Reconciliation Statement as at August 31

    Balance at Bank as per Updated Cash Book $2,281

    Add Unpresented Cheques $2,250

    Less Lodgements not yet credited ($1,900)

    Balance as per Bank Statement $2,631

    Explanation:

    Step 1 Bring the Cash Book Bank Balance up to date

    Debit:

    Balance as at August 31, $860

    Interest $12

    NSF check $32

    Direct deposit $1400

    Totals $2,304

    Credit:

    Service fee charged $8

    Insurance understated $15

    Updated Cash Book Balance (Balancing figure) $2,281

    Totals $2,304

    Step 2 Prepare the Bank Reconciliation Statement

    Bank Reconciliation Statement as at August 31

    Balance at Bank as per Updated Cash Book $2,281

    Add Unpresented Cheques $2,250

    Less Lodgements not yet credited ($1,900)

    Balance as per Bank Statement $2,631
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