Carol Stokke receives her April 6 bank statement showing a balance of $1,177.35 her checkbook balance is $955.55. The bank statement shows an ATM charge of $32.40, NSF fee of $28.20, earned interest of $3.15, and Carol's $770.15 refund check, which was processed by the IRS and deposited to her account. Carol has two checks that have not cleared-No. 115 for $659.95 and No. 116 for $301.10. There is also a deposit in transit for $1,451.95. Prepare Carol's bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places.)

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20 February, 09:00

Carol Stokke receives her April 6 bank statement showing a balance of $1,177.35 her checkbook balance is $955.55. The bank statement shows an ATM charge of $32.40, NSF fee of $28.20, earned interest of $3.15, and Carol's $770.15 refund check, which was processed by the IRS and deposited to her account. Carol has two checks that have not cleared-No. 115 for $659.95 and No. 116 for $301.10. There is also a deposit in transit for $1,451.95. Prepare Carol's bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places.)

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Answers (1)

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Isabell Hill · Answer 1

Cash Blanace after reconciliation: 1,668.5

Explanation:

Bank Balance 1,177.35

Deposit In Transit 1,451.95

Outstanding Check

No 115 (659.95)

No 116 (301. 10)

Adjusted Bank 1,668.25‬

Cash Account 955.55

IRS refund 770.15

earned interest 3.15

Bank fee charge (32.40)

Non-sufficient funds fee (28.20)

Adjusted Cash 1,668.25

notes:

The outstanding check and deposit in transit are unknow information for the bank. So it this needed to adjust the bank balance for this.

The firm cash account do not know of the bank fees and interest until receiving the bank statement. So we adjust for all the informaiton inside this bank resume.