On May 1, 2004 the Jones Company received a bank statement that showed a $2,950 balance. Mr. Jones showed a $4,010 checking account balance. The bank did not return check No. 124 for $1080 and check No. 138 for $720. A $3,200 deposit made on

Question

On May 1, 2004 the Jones Company received a bank statement that showed a $2,950 balance. Mr. Jones showed a $4,010 checking account balance. The bank did not return check No. 124 for $1080 and check No. 138 for $720. A $3,200 deposit made on

April 30 was in transit. The bank charged Mr. Jones $12 for check printing and $18 for an NSF check. Mr. Jones forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Mr. Jones. Determine the reconciled balance

Answer 1

To determine the reconciled balance, we need to go through the process of bank reconciliation. Here's a step-by-step guide on how to do it:

Step 1: Start with the bank statement balance.
The bank statement shows a balance of $2,950.

Step 2: Adjust for outstanding checks.
Identify the checks that have not been cleared by the bank. In this case, checks No. 124 ($1,080) and No. 138 ($720) were not returned by the bank. Subtract the amounts of these checks from the bank statement balance.

$2,950 - $1,080 - $720 = $1,150

Step 3: Adjust for deposits in transit.
Identify deposits that were made before the bank statement date but have not yet been reflected in the bank statement. In this case, a $3,200 deposit made on April 30 is in transit. Add this amount to the adjusted balance.

$1,150 + $3,200 = $4,350

Step 4: Account for bank fees and charges.
Subtract any bank charges or fees from the adjusted balance. In this case, the bank charged $12 for check printing and $18 for an NSF (insufficient funds) check.

$4,350 - $12 - $18 = $4,320

Step 5: Include any additional credits or memos.
Include any additional credits or memos provided by the bank. In this case, the bank collected a $400 note for Mr. Jones. Add this amount to the adjusted balance.

$4,320 + $400 = $4,720

Step 6: Include any additional debits or memos.
Include any additional debits or memos that were not included in the bank statement. In this case, Mr. Jones forgot to record a $30 withdrawal at the ATM. Subtract this amount from the adjusted balance.

$4,720 - $30 = $4,690

Therefore, the reconciled balance is $4,690.