[candycane27]

In reconciling the checking account for colonail cleaners, Steve Papa found that a check for $34.50 had been recorded in the check register as $43.50. The bank returned an NSF check for $62.55. Interest income of $8.25 was earned and a service charge of $10.32 was assessed. What amount should be added/subtracted from the checkbook balance to bring it up to date.

[royeyrich]

Steve Papa's Bank Statement Reconciliation.

First I am going to make an assumption that you may be new to reconciliation bookkeeping. That's okay because we all started at the same ground zero with this stuff! That being said I want to throw out a basic need to know item that I didn't get right in the beginning. Don't let the debit and credit side of things get you confused. Debit just means LEFT and credit is the RIGHT side of an account, that's all! Make sure all your debits equal all the credits and life is good.

Now as to your question...

1.) A check in the amount of $34.50 was recorded as $43.50. This is a common numerical transposition error in accounting. Quickly identified by the difference in the two amounts being $9.00. The correction could be done one of two ways. Enter a single entry in the amount of $9.00 adjusting the same expense account as the original register entry, using a description identifying it as an adjustment. Or done in two steps. First you Reverse the original entry in the registry, removing the $34.50 error. Immediately followed by an entry for the correct amount $43.50 crediting the bank account and debiting your expense entry.

2.) NSF returned check in the amount of $62.55. This returned check needs to a credit entry into the register and a debit to the same account used with the original deposit entry.

3.) Interest Income: $8.25 is a credit to the Interest Income and a debit to the registry, or bank account.

4.) Service Charge: $10.32 is a debit to the expense account Bank Charges with a credit to the bank account registry.

Summary Bank Account Registry Entries:
$ 9.00- credit for the check transposition entry.
$ 62.55- credit for the NSF returned check.
$ 8.25+ debit for Interest earnings.
$ 10.32- credit for Banking Service Charges.

The net reconciliation entries total: $ 73.62- net credit to the registry, reducing the checking account balance.

The best of luck in your bookkeeping and accounting future...

[candycane27]

Matthew Stokes was completing the bank reconciliation for Parker's Tool and Die Company. The check register balance was $1,503.67. Matthew found that a $76.00 check had been recorded in the check register as $67.00; that a note for $1,500 had been collected by the bank for Parker's and the collection fee was $12.00; that $15.60 interest was earned on the account; and that an $8.35 serrvice charge had been assessed. What should the check register balance be after Matthew updates it with the bank reconciliation information?

[Curlyben]

Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

[morgaine300]

Roreyrich, the problem is only asking for the adjustments to the check register and not entries. Two of them are incorrect. We also do not just do people's homework for them and give out the answers. They need to show some attempt at doing the problem for themselves, ask what's confusing them... or at the very least give them an explanation of why rather than just the answer, which doesn't really help them. Read the link in the post above mine - it goes for those doing the answering as well.

[morgaine300]

candycane27, have you made any attempt at doing this problem? You're welcome to post any work you've tried and someone can check it over.