Answer to Question #263319 in Accounting for Another you

Question

A. The account of Pink Lady Company was tasked to perform monthly bank reconciliation. She downloaded the company's October 31 bank statement that showed a balance of 64,800.00. She also printed the cash ledger from the company's computerized accounting system. It states an ending balance of 16,700.00. She also found the following items:

• The bank statement showed bank service charge of 1,600.00
• The bank collected 3,000.00 from a note receivable for PX Manufacturing. 500.00 was charged as a collection fee.
• Deposits in transit, 102,000.00
• Checks outstanding on November 30, 158,200.00
• The accountant found a check issued to Oragon Corporation for 9,000 that cleared the bank but was not in the ledger.

(Required: Prepare a bank reconciliation using the adjusted balance)

Answer 1

Solution:

The bank reconciliation is as per the below: