Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 3

Bank reconciliation Prepare a bank reconciliation as of August 31 from the following information:
a. The August 31 balance shown on the bank statement is $9,810.
b. There is a deposit in transit of $1,260 at August 31.
c. Outstanding checks at August 31 totaled $1,890.
d. Interest credited to the account during August but not recorded on the company's books amounted to $108.
e. A bank charge of $56 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $739 had been recorded as a disbursement of $379.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,488.