Derek Company gathered the following reconciling information in preparing its September bank reconciliation:

Question

Quizplus · Accepted Answer

The reconciling information indicates that there are outstanding checks totaling $4,100 (checks written but not yet cleared by the bank) and a bank service charge of $50. Thus, the adjusted balance per bank is calculated as follows:

Balance per bank statement 
$26,000

Add: Deposits in transit 
$7,500

$33,500

Less: Outstanding checks 
$4,100

Bank service charge 
$50

$4,150

Adjusted balance per bank 
$29,350

The adjusted balance per book is given as $26,290. To calculate the reconciling items that bring the book balance to the adjusted balance per bank, we have to add a deposit error of $1,000 (book side error) and deducted a note collected by the bank of $100 (bank side error).

Adjusted balance per book 
$26,290

Add: Deposit error 
$1,000

Less: Note collected by bank 
$100

$900

Adjusted balance per bank 
$29,350

The reconciling items total $3,060, so the best choice is C.

Derek Company Gathered the Following Reconciling Information in Preparing Its