On November 1,2009, Broom Company received a bank statement that showed a $2,950 balance. Broom showed a $4,010 checking account balance. The bank didn't return check No.124 for $1,080 and check No.138 for $720. A $3,200 deposit made on Oct30 was in transit. the bank charged Broom $12 for checking and $ 18 for an NSF check. Broom forgot to record a $30 withdrawl at the ATM. The bank also collected a $400note for Broom. Prepare a bank reconciliation

To prepare a bank reconciliation for Broom Company, follow these steps:

Step 1: Compare the bank statement balance and the company's checking account balance.
- Bank Statement balance: $2,950
- Company's Checking Account balance: $4,010

Step 2: Identify the items that are recorded in either the bank statement or the company's books but not in both.
- Missing checks:
- Check No. 124: $1,080
- Check No. 138: $720
- Deposits in transit:
- Deposit made on Oct 30: $3,200

Step 3: Identify any bank fees or charges and items that affect the company's balance but are not included in the bank statement.
- Bank charges: $12 (checking fee) + $18 (NSF check fee)
- Forgotten withdrawal at ATM: $30

Step 4: Identify any interest or other income and items that affect the company's balance but are not included in the company's books.
- Collection of a note: $400

Step 5: Adjust the company's checking account balance for any items identified in Steps 2, 3, and 4.
- Starting balance: $4,010
- Add: Deposits in transit ($3,200)
- Add: Collection of a note ($400)
- Subtract: Missing check No. 124 ($1,080)
- Subtract: Missing check No. 138 ($720)
- Subtract: Bank charges ($12 + $18)
- Subtract: Forgotten withdrawal at ATM ($30)
- Adjusted company's balance: $6,750

Step 6: Compare the adjusted company's balance to the bank statement balance.
- Adjusted company's balance: $6,750
- Bank statement balance: $2,950

Step 7: Record any remaining differences as adjustments.
- Difference: $6,750 - $2,950 = $3,800

The $3,800 difference could be due to timing differences, such as outstanding checks or deposits in transit. It is important to investigate further and reconcile any discrepancies with the bank.

To prepare a bank reconciliation, follow these steps:

Step 1: Gather the necessary information
- Obtain the bank statement for the given period (in this case, November 1, 2009).
- Gather the company's own records, including the check register or any other documentation of transactions.

Step 2: Compare deposits
- Compare the deposits listed on the bank statement with the deposits recorded in the company's records.
- Note any differences. In this case, a $3,200 deposit made on October 30 is in transit, meaning it hasn't yet been recorded by the bank.

Step 3: Compare checks
- Compare the checks listed on the bank statement with the checks recorded in the company's records.
- Note any differences. In this case, two checks were not returned by the bank: check No.124 for $1,080 and check No.138 for $720.

Step 4: Identify other transactions
- Look for any other transactions on the bank statement that may not have been recorded by the company.
- In this case, there is an NSF (Non-Sufficient Funds) charge of $18 and a service charge of $12.

Step 5: Adjust the company's records
- Make adjustments to the company's records to incorporate the differences found in steps 2 and 3.
- Add the $3,200 deposit to the company's records.
- Deduct the amounts of the two missing checks ($1,080 and $720) from the respective accounts in the company's records.

Step 6: Calculate the adjusted balance
- Calculate the adjusted balance of the company's checking account by adding or subtracting any additional transactions found in step 4.
- In this case, Broom Company should subtract the $400 note collected by the bank.
- Also, subtract the $30 withdrawal from the ATM that was not recorded by the company.

Step 7: Reconcile the balances
- Compare the adjusted balance of the company's checking account with the bank statement balance.
- If the two balances match, the reconciliation is complete. If not, continue to the next step.

Step 8: Investigate discrepancies
- Double-check the accuracy of all calculations and adjustments.
- Look for any errors or omissions that may have been made in either the company's records or the bank statement.

By following these steps, you should be able to prepare a bank reconciliation for Broom Company in this scenario.