Citizen Bank sent a bank statement to Bane Co. showing an ending balance of $1,480. On the bank statement there was a service charge of $20. The bookkeeper of Bane Co. noticed in the reconciliation process a deposit in transit of $200 along with checks outstanding of $300. Complete the reconciliation for Bane assuming a beginning balance of $1,400.

Question

Quizplus · Accepted Answer

The reconciliation involves adjusting the bank statement balance for deposits in transit and outstanding checks. Starting with the bank statement balance of $1,480, add the deposit in transit of $200, and subtract the outstanding checks of $300. This gives an adjusted balance of $1,380.

Citizen Bank Sent a Bank Statement to Bane Co