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Y_Kistochka [10]
3 years ago
8

The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31​, 2018. There were outstanding checks

totaling $ 500 and a December 31 deposit in transit of $ 400. The bank​ statement, which came from Park Cities​ Bank, listed the December 31 balance of $3,120. Included in the bank balance was a collection of $ 500 on account from Jane Lindsey​, a Gate City customer who pays the bank directly. The bank statement also shows a $20 service charge and $ 10 of interest revenue that Gate City earned on its bank balance.
Requried:
Prepare Gate City​'s bank reconciliation at December 31.
Business
1 answer:
Soloha48 [4]3 years ago
3 0

Answer:

Gate City Security Systems

Bank Reconciliation at December 31, 2018

Book:  

Balance , December 31, 2018  $2,530

<em>Add: </em>

Collection from Jane Lindsey $500  

Interest revenue $10

<em>Less:</em>

Service charges  $20

Adjusted book balance December 31, 2018  <u>$3,020</u>

Bank:

Balance , December 31,2018  $3,120

<em>Add:</em>

Deposit in transit  $400

<em>Less:</em>

Outstanding cheque  $500

Adjusted bank balance December 31, 2018  <u>$3,020 </u>

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Explanation:

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Simmons sold merchandise to Drafke for $5,000 with payment terms of 2/10, n/30. Two days later, Drafke returned two of the units
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