Question

The following data were accumulated for use in reconciling the bank account of Wolfpack Bread Inc. for August 20Y9:

Answer 1

Answer:

Adjusted bank account balance = Adjusted cash book balance = $34,500

Explanation:

Note: The correct requirement of this question is actually as follows:

Prepare a bank reconciliation.

It is not the ones erroneously stated in the question.

The bank reconciliation can now be prepared as follows:

Wolfpack Bread Inc.

Bank Reconciliation

August 31, 20Y9

Statement of Adjusted Bank Account Balance  

Details                                                                       Amount ($)  

Cash balance according to bank statement              33,580

Add:

Deposit in transit, not recorded by bank                    14,260

Less:

Checks outstanding                                                     (13,340)  

Adjusted bank account balance                                34,500  

Statement of Adjusted Cash Book Balance  

Details                                                                       Amount ($)   

Cash balance according to Wolfpack                         34,437

Add:

Check error ($762 - $276)                                              486

Less:

Bank service charges                                                     (144)

Other reconciling items (w.1)                                         (279)  

Adjusted cash book balance                                      34,500  

Working:

w.1: Other reconciling items = Cash balance according to Wolfpack + Check error ($762 - $276) - Bank service charges - Adjusted bank account balance = $34,437 + 486 - 144 - $34,500 = $279