Question

A. Prepare bank reconciliation for Vahnidosa Beauty Essentials for the month of October 2021 using adjusted balance method.

• Book balance - 42,500.00
• Bank Statement Balance - 57,000.00
• Outstanding Checks - 42,000.00
• Deposit in Transit - 30,000.00
• Interest Income - 9,500.00
• Bank Service Charge - 1,500.00
• Returned Customer Check - 5,000.00
• Bank charge for new checks - 450.00

Answer 1

 Adjusted balance method:

Bank statement balance; $\$$57000

Add Deposits in transit;$\$$30000

=$\$87000$

Less outstanding checks; $\$$42000

Adjusted bank statement balance;$\$45000$

Book balance;$\$$42500

Add interest income;$\$$9500

Deduct Bank service charge;$\$$1500

Deduct Refund customer check;$\$$5000

Deduct charge for new checks;$\$$450

Adjusted book balance;$\$45050$