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.
To determine the reconciled balance, we need to go through the following steps:
Step 1: Start with the ending balance on the bank statement
The bank statement shows a balance of $2,950.
Step 2: Add deposits in transit
There is a $3,200 deposit made on April 30 that is in transit, meaning it hasn't been recorded by the bank yet. Add this deposit to the bank statement balance:
$2,950 + $3,200 = $6,150.
Step 3: Subtract outstanding checks
Two checks, No. 124 for $1,080 and No. 138 for $720, were not returned by the bank. Subtract these outstanding checks from the adjusted bank statement balance:
$6,150 - $1,080 - $720 = $4,350.
Step 4: Compare the adjusted bank statement balance to the adjusted checking account balance
According to Mr. Jones, his checking account balance is $4,010. Now, we need to reconcile this balance with the adjusted bank statement balance:
$4,010 - $30 (ATM withdrawal) - $12 (check printing fee) - $18 (NSF check fee) - $400 (collected note) = $3,550.
Step 5: Check for any errors or omissions
Check if there are any other transactions or adjustments that need to be considered. If there are none, then the reconciled balance is $3,550.
Therefore, the reconciled balance between Mr. Jones' checking account and the bank statement is $3,550.
To determine the reconciled balance, we need to go through the process of reconciling the bank statement with Mr. Jones' records. Here are the steps:
Step 1: Start with Mr. Jones' check register balance.
Mr. Jones showed a checking account balance of $4,010. We will start with this balance.
Step 2: Add any deposits in transit.
The $3,200 deposit made on April 30 was in transit, meaning it had not yet been recorded by the bank. So, we need to add this amount to Mr. Jones' balance. Adding $3,200 to $4,010 gives us $7,210.
Step 3: Subtract any outstanding checks.
The bank did not return check No. 124 for $1,080 and check No. 138 for $720. These checks were issued by Mr. Jones but have not yet been processed by the bank. We need to subtract the total amount of these outstanding checks from the balance. Subtracting $1,080 and $720 from $7,210 gives us $5,410.
Step 4: Account for any bank fees or charges.
The bank charged Mr. Jones $12 for check printing and $18 for an NSF check. We need to deduct these fees from the balance. Subtracting $12 and $18 from $5,410 gives us $5,380.
Step 5: Account for any other transactions.
Mr. Jones forgot to record a $30 withdrawal at the ATM. We need to subtract this withdrawal from the balance. Subtracting $30 from $5,380 gives us $5,350.
The bank also collected a $400 note for Mr. Jones. We do not need to adjust the balance for this transaction as it has already been included in the bank statement.
Step 6: Compare the reconciled balance with the bank statement balance.
The bank statement shows a balance of $2,950. We need to compare this with the reconciled balance of $5,350. Since they do not match, we need to investigate any possible errors. It is possible that there are additional transactions not mentioned in the given information that could account for the difference.
In conclusion, based on the information provided, the reconciled balance is $5,350. However, since this balance does not match the bank statement balance, further investigation is required to identify any additional transactions or errors.