Bank Reconciliation
(a) on November 30, after all transactions have been recorded, the balance in the company's cash account has a balance of $27,202.
(b) the company's bank statement shows a balance on November 30 of $29,279.
(c) outstanding checks at November 30 include check #3030 in the amount of $1,525 and check #3556 in the amount of $1,459.
(d) a credit memo included with the bank statement indicates that the bank collected $780 on a noninterest-bearing note receivable for Avisa. The bank deducted a $10 collection fee, and credited the remainder of $770 to Avisa's account.
(e) a debit memo included with the bank statement shows a $67 NSF check from a customer, J. Brown.
(f) a deposit placed in the bank's night depository on November 30 totaled $1,675, and did not appear on the bank statement.
(g) examination of the checks on the bank statement with the entries in the accounting records reveals that check #3445 for the payment of an account payable was correctly written for $2,450, but was recorded in the accounting records as $2,540.
(h) included with the bank statement was a debit memorandum in the amount of $25 for bank service charges. It has not been recorded on the company's books.
Based on the above information, prepare the November bank reconciliation for the Avisa Company.
When I looked at the book this is how the example showed it but here it comes out wrong. I checked online but people had done their different and I think this is how my teacher wants it done. The other way that I've seen it is like this.
Balance per bank statement $29,279
less outstanding checks ($2,984)
less note collection ($770)
add NSF check $67
add night deposit $1,675
less recording error ($90)
add service charge $25
= Balance per cash records $27,202
I can do it like this but I think it needs to be done like bellow. This is accounting 101 class.
Bank Balance $29,279... Book Balance $27,202
Outstanding Checks... Bank service charges $25
#3030 $1,525 Credit memo $770
#3556 $1,459 NSF Checks $67
$2984 Bank Errors
Totals $27,970 $27,974
The problem is the totals don't come out the same. Ty for helping
