Using the following information, prepare a bank reconciliation for Cullumber Company for May 31, 2022. a. The bank statement balance is $9,100. b. The cash account balance is $6,830. c. Outstanding checks totaled $2,460. d. Deposits in transit are $600. e. The bank service charge is $10. f. Collection of note by the bank, $420.

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Business

Jovani Garcia

24 March, 04:15

Using the following information, prepare a bank reconciliation for Cullumber Company for May 31, 2022. a. The bank statement balance is $9,100. b. The cash account balance is $6,830. c. Outstanding checks totaled $2,460. d. Deposits in transit are $600. e. The bank service charge is $10. f. Collection of note by the bank, $420.

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Lilianna Mcneil · Answer 1

Bank reconciliation for Cullumber Company for May 31, 2022

Amount in $ Amount in $

Balance per bank statement 9,100

Less:

Outstanding checks 2,460

collection of note by bank 420

Subtotal (2,880)

Add:

Deposit in transit 600

Bank service charge 10

Subtotal 610

Balance per cash book 6,830

Explanation:

The bank reconciliation is one done between the balance per the books and balance per the bank statement.

This is usually as a result of transactions known as reconciling items. These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.