Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 22

Assume that the following information relates to your most recent bank statement dated September 30:
Checks written that had not cleared the bank as of September 30:
Interest amounting to $4 was credited to your account by the bank in September. The bank's ser­vice charge for the month was $5. In addition to your bank statement, you received a letter from your parents informing you that they had made a $2,400 electronic funds transfer directly into your account on October 2. After reading your parents' letter, you looked in your checkbook and discov­ered its balance was $601. Adding your parents' deposit brought that total to $3,001.
Prepare a bank reconciliation to determine your correct checking account balance. Explain why neither your bank statement nor your checkbook shows this amount.