A bank reconciliation is done to check whether the cash balance maintained in the ledger accounts matches with the balance of the bank statement.
If the two balances do not match after reconciliation , it means there may be some errors in recording or mishandling of cash.
After reconciliation the ending balance of the given question must be
$ 2549.29.
Checking Account Summary
a) Ending Balance from the Statement $ 2368.9
b) Add Deposits Outstanding $ 300.00
<u>c) </u><u> Total of Checks Outstanding </u><u>($ 119.00)</u>
d) Revised Statement Balance $ 2549.29
e) Balance from checkbook $ 2549.29
The Deposit Outstanding can be found by matching the monthly statement and the check register.
The amount $300 deposit is shown in the check register but not in the monthly cash statement.
Therefore it is added to the ending balance of the statement to arrive at the balance of the check register.
The Checks Outstanding can be found from the Check register.
The checks of the Motor Vehicles and the Pasta Pete's are shown in the first column and subtracted in the last column, which means these are still outstanding.
The total of these checks outstanding is ($86.5+ 32.5=) $119.00
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