Question 1

The information below is from the books of the Pawnee Corporation on June
30:

a
Assuming no errors were made, compute the cash balance per books on

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June 30 before any reconciliation adjustments.
Balance per bank statement $12,16

ed
4

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Receipts recorded but not yet deposited in the bank 1,340
Bank charges not recorded 16

sh
Note collected by bank and not recorded on books 1,120

as
Outstanding checks 1,100
NSF checks--not recorded on books nor redeposited 160

w
m e
co rc
Balance per bank statement, June 30 $12,164

Bank charges o. ou
Add: Receipts not yet deposited 1,340
16
er res
NSF checks 160
$13,680
eH y
rs ud

Deduct Note collected by bank 1,120

:
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ss

Outstanding checks 1,100

Balance per books before reconciliation adjustments $11,460
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Question 2
The Ryan Manufacturing Company received its bank statement for the month
ending May 31. The bank statement indicates a balance of $32,400. The cash

a
account as of the close of business on May 31 has a balance of $8,350. In

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reconciling the balances, the following items are discovered.
Balance per bank statement $32,400

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(a Collection by bank of note for $1,500
) less collection fees of $250. Add deposits in transit 51,000

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(b Deposits in transit, $51,000. $83,400

sh
)
(c)The bank charged the depositor $800 Deduct outstanding checks 79,100

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for overdrafts. Corrected balance $ 4,300
(d Checks outstanding on May 31,

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) $79,100.

m e
(e A canceled check issued to Kate Corp. Balance per depositor's records $ 8,350

co rc
) for $4,500 was not recorded on Ryan
Add note receivable collected by bank 1,250
Manufacturing Company's books.
Prepare a bank reconciliation statement.
o. ou $ 9,600
er res
Deduct:
eH y

Overdrafts $ 800
rs ud

Book error--unrecorded check 4,500 5,300

t

Corrected balance $ 4,300

ss
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 Question 3
The books of Barry’s Service, Inc. disclosed a cash balance of $68,757 on June
30. The bank statement as of June 30 showed a balance of $54,780. Additional

a
information that might be useful in reconciling the two balances follows:

vi
Prepare a bank reconciliation statement, using the form reconciling bank and

ed
book balances to the correct cash balance.

ar
(a) Check number 748 for $3,000 was originally recorded on the books as

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$4,500.
(b) A customer's note dated March 25 was discounted on April 12. The note

as
was dishonored on June 29 (maturity date). The bank charged Barry’s

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account for $14,265, including a protest fee of $42.
(c) The deposit of June 24 was recorded on the books as $2,895, but it was

m e
co rc
actually a deposit of $2,700.
(d) Outstanding checks totaled $9,885 as of June 30.
o. ou
(e) There were bank service charges for June of $210 not yet recorded on the
er res
books.
(f) Barry’s account had been charged on June 26 for a customer's NSF check
eH y

for $1,296.
rs ud

(g) Barry properly deposited $600 on June 3 that was not recorded by the
bank.
t
ss

(h) Receipts of June 30 for $13,425 were recorded by the bank on July 2.
(i) A bank memo stated that a customer's note for $4,500 and interest of $165
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had been collected on June 27, and the bank charged a $36 collection fee.
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 Balance per bank statement, June 30 ......... $54,780
Add: Deposits in transit ................ $13,425

a
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Bank error--deposit not recorded ............ 600 14,025
$68,805

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Deduct: Outstanding checks ................. 9,885

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Corrected bank balance ...................... $58,920

sh
as
Balance per books, June 30 .................. $68,757

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Add: Book error--Check No. 748 .......... $ 1,500
Customer note collected by bank ............. 4,629 6,129

m e
co rc
$74,886
Deduct:
o. ou
Dishonored note ....................
Book error--improperly recorded deposit .....
$14,265
195
er res
NSF check ................................... 1,296
eH y

Bank service charges ........................ 210 15,966

rs ud

Corrected book balance ...................... $58,920

t
ss
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