The following information is available to reconcile Sadie’s Pet Station, Inc. book balance of cash with its bank statement cash balance as of July 31, 2010:

a. The company’s Cash account, after all posting is complete on July 31, is $1,234.

b. The bank statement shows a $1,295 balance.

c. Checks outstanding total $980.

d. In comparing the canceled checks returned by the bank with the entries in the accounting records, it is found that Check No. 102 to pay the June electricity bill was erroneously entered in our accounting records as $420. The check was correctly written for $220, and the bank withdrew the correct amount—$220.

e. The company’s accounting records show a deposit from Tom’s Tools for $70. However, the bank does not show that deposit. Instead, the bank indicates it was a NSF check. Further, the bank added a $20 NSF charge.

f. Enclosed with the statement is a $25 charge for bank services. It has not yet been recorded because no previous notification had been received.

g. The July 31 daily cash receipts of $1,004 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.

Required: Prepare a bank reconciliation for this company as of July 31, 2010.

Wow... seems like a lot of work. You better get started on it.

We HELP for free, not do it for you. Show us your work and where you are having problems.

Your starting point is A and B. You need to set up your bank reconciliation into two sections; one for the company's cash balance, which is letter A and one section for the bank's balance, which is letter B.

You have to use the information in the other letters to add to the balance or subtract from the balance either in letter A or letter B to get your balances in letter A and letter B into agreement. For example letter C; the amount comes from the company's cash account, which is letter A so you need to subtract this amount from the bank's balance, which is letter B because the checks have not been posted to your actual bank balance.

For the format of the bank reconciliation use an example in your accounting textbook. I would use Excel to set up and do your reconciliation.