Author Question: Prepare the June bank reconciliation for Low Company using the reconciling items below. The cash ... (Read 119 times)

B

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Prepare the June bank reconciliation for Low Company using the reconciling items below. The cash balance for Low Company was 8,110. The balance on the bank statement was 12,505.
 
  a. 50 bank service charge
  b. 4,889 worth of outstanding checks
  c. 118 check for insufficient funds returned by the bank
  d. Low Company deposited 576 worth of checks that are not on the bank statement.
  e. The bank collected a note receivable for Low Company worth 275.
  f. The bank charged Low Company 25 to collect the note receivable.
 
   Low Company
   Bank Reconciliation
   June 30, 2012
 
  Bank Balance 12,505 Book Balance  8,110
  Add: Add:
 
  Deduct: Deduct:

Question 2

Bringing the book and bank balances into agreement is called ___________________ _.
 Fill in the blank(s) with correct word



xoxo123

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Answer to Question 1

Low Company
Bank Reconciliation
June 30, 2012

Bank Balance 12,505 Book Balance  8,110
Add: Add:
Deposits in transit 576 Note collected by bank 275
Deduct: Deduct:
Outstanding checks (4,889) NSF check (118)
Note collection charge (25)
Adjusted balance 8,192 8,192

Answer to Question 2

bank reconciliation



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