Marathon Street Bank sent Flank Industries their end-of-month bank statement for October. The end-of-month balance by the bank is $11,229. From the statement, it can be determined that a deposit for $4,250 is in transit at the end of the statement period. Also, the statement reveals that checks for $86, $106, and $95 are outstanding. Marathon Street collected a 90-day, 12% interest, $4,000 note receivable charging $20 for the service. Accrued interest of $120 on the note has also been collected. The bank charges a monthly account fee of $35. The end-of-month balance per the company books is $11,127.

Required
1. Complete a bank reconciliation for Flank Industries at October 31, 2017.
2. Identify any necessary adjustments to the accounting records identified in the reconciliation.

Question

Required
1. Complete a bank reconciliation for Flank Industries at October 31, 2017.
2. Identify any necessary adjustments to the accounting records identified in the reconciliation.

Quizplus · Accepted Answer

The Answer of Marathon Street Bank sent Flank Industries their end-of-month bank statement for October. The end-of-month balance by the bank is $11,229. From the statement, it can be determined that a deposit for $4,250 is in transit at the end of the statement period. Also, the statement reveals that checks for $86, $106, and $95 are outstanding. Marathon Street collected a 90-day, 12% interest, $4,000 note receivable charging $20 for the service. Accrued interest of $120 on the note has also been collected. The bank charges a monthly account fee of $35. The end-of-month balance per the company books is $11,127.

Required
1. Complete a bank reconciliation for Flank Industries at October 31, 2017.
2. Identify any necessary adjustments to the accounting records identified in the reconciliation.

Marathon Street Bank Sent Flank Industries Their End-Of-Month Bank Statement