Ask Question
15 February, 11:08

There were outstanding checks totaling $ 1,700 and a December 31 deposit in transit of $ 300. The bank statement, which came from Park Cities Bank, listed the December 31 balance of $ 4,460. Included in the bank balance was a collection of $ 620 on account from Brendan Ballou , a Safety customer who pays the bank directly. The bank statement also shows a $ 20 service charge and $ 10 of interest revenue that Safety earned on its bank balance. Prepare Safety 's bank reconciliation at December 31.

+1
Answers (1)
  1. 15 February, 11:45
    0
    2,450

    Explanation:

    Starting from the bank balance at 12/31 we have

    $.4,460

    within which 1,700 in issued checks are not considered, which diminish the balance and neither is considered a deposit of 300 that increases the balance so, Our account is overvalued at 1,400. The records of these operations must be "canceled" to arrive at the accounting balance.

    For our part we do not consider a collection of 620, an interest earned of 10 and an expense of 20

    Which in total means that our account is undervalued in 610, but this is an omission of ours, so there is no record, and should be deducted from the bank balance.

    Total accounting balance = 2,450

    Posing it as an equation

    x countable balance

    +1700 (checks issued)

    - 300 (transit deposit)

    +620 (unregistered collection)

    + 10 (unregistered interest earned)

    - 20 (unregistered bank charges)

    = 4460

    x = 4460-1700 + 300-620-10 + 20

    x = 2,450

    we must - register

    accounts receivable 620

    earned interests 10

    banking expenses 20

    Bank 610

    after this registration the reconciliation is

    Bank : 3,060 (2,450+610)

    +1700 (outstanding checks-transit)

    - 300 (transit deposit)

    =4.460
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “There were outstanding checks totaling $ 1,700 and a December 31 deposit in transit of $ 300. The bank statement, which came from Park ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers