Deal Corp.prepares monthly bank reconciliations of its chequing account balance.The bank statement for December Year 1 indicated the following:
$\begin{array}{llr}
\text {Balance, December 31, Year 1 } &\$7,920\
\text { Bank service charges for December} &20\
\text { Interest earned during December } &30\
\text { NSF cheque from a customer which had been previously deposited by Deal } &32\
\text { Collection of note $ (\$ 1,000) $ and the related interest $ (\$ 40) $ from Deal's customer} &1040\
\end{array}$

An analysis of cancelled cheques and deposits and the records of Deal revealed the following items:
$\begin{array}{llr}
\text {Chequing account balance per Deal's accounting records } &\$7,170\
\text { Outstanding cheques as of December 31 } &952\
\text { Deposits in transit on December 31} &1,310\
\text { Error in recording cheque \# 267 issued by Deal } &90\
\end{array}$

The correct amount of cheque # 267 is $340,but it was recorded as a cash disbursement of $430.The cheque was issued to pay for merchandise purchased.The cheque was written correctly and appeared on the bank statement correctly.
A) Prepare a bank reconciliation in proper form for December 31, Year 1.

Question

Deal Corp.prepares monthly bank reconciliations of its chequing account balance.The bank statement for December Year 1 indicated the following:
 $\begin{array}{llr}
  \text {Balance, December 31, Year 1  } &\$7,920\
 \text {  Bank service charges for December} &20\
 \text { Interest earned during December } &30\
 \text { NSF cheque from a customer which had been previously deposited by Deal } &32\
 \text {   Collection of note $ (\$ 1,000) $ and the related interest $ (\$ 40) $ from Deal's customer} &1040\
\end{array}$
 
An analysis of cancelled cheques and deposits and the records of Deal revealed the following items:
 $\begin{array}{llr}
  \text {Chequing account balance per Deal's accounting records  } &\$7,170\
 \text { Outstanding cheques as of December 31 } &952\
 \text {  Deposits in transit on December 31} &1,310\
 \text { Error in recording cheque \# 267 issued by Deal } &90\
\end{array}$
 
The correct amount of cheque # 267 is $340,but it was recorded as a cash disbursement of $430.The cheque was issued to pay for merchandise purchased.The cheque was written correctly and appeared on the bank statement correctly.
 A) Prepare a bank reconciliation in proper form for December 31, Year 1.

Quizplus · Accepted Answer

The Answer of Deal Corp.prepares monthly bank reconciliations of its chequing account balance.The bank statement for December Year 1 indicated the following:
 $\begin{array}{llr}
  \text {Balance, December 31, Year 1  } &\$7,920\
 \text {  Bank service charges for December} &20\
 \text { Interest earned during December } &30\
 \text { NSF cheque from a customer which had been previously deposited by Deal } &32\
 \text {   Collection of note $ (\$ 1,000) $ and the related interest $ (\$ 40) $ from Deal's customer} &1040\
\end{array}$
 
An analysis of cancelled cheques and deposits and the records of Deal revealed the following items:
 $\begin{array}{llr}
  \text {Chequing account balance per Deal's accounting records  } &\$7,170\
 \text { Outstanding cheques as of December 31 } &952\
 \text {  Deposits in transit on December 31} &1,310\
 \text { Error in recording cheque \# 267 issued by Deal } &90\
\end{array}$
 
The correct amount of cheque # 267 is $340,but it was recorded as a cash disbursement of $430.The cheque was issued to pay for merchandise purchased.The cheque was written correctly and appeared on the bank statement correctly.
 A) Prepare a bank reconciliation in proper form for December 31, Year 1.

Deal CorpPrepares Monthly Bank Reconciliations of Its Chequing Account Balance