On November 1, 2009, Broom Company received a bank statement that showed a $2950 balance. Broom showed a $4010 checking account balance. The bank didn't return check No. 124 for $1080 and ch for check No.138 for $720. A $3200 deposit made on October 30 was in transit. The bank charged Broom $12 for check printing and $18 for NSF check. Broom forgot to record a $30 withdrawal at the ATM. The bank also collected a $400 note for Broom. Prepare a bank reconcilliation.

2,500

To prepare a bank reconciliation, follow these steps:

1. Start with the bank's ending balance: According to the bank statement, the ending balance is $2,950.

2. Add deposits in transit: Identify any deposits made by the company that have not been recorded by the bank yet. In this case, the $3,200 deposit made on October 30 is in transit and should be added to the bank's ending balance.

Bank's ending balance ($2,950) + Deposit in transit ($3,200) = Adjusted bank balance ($6,150)

3. Deduct outstanding checks: Identify any checks issued by the company that have not been cleared by the bank yet. In this case, check No. 124 for $1,080 and check No. 138 for $720 were not yet returned by the bank, so they should be deducted from the adjusted bank balance.

Adjusted bank balance ($6,150) - Outstanding checks ($1,080 + $720) = Adjusted bank balance ($4,350)

4. Compare adjusted bank balance with company's balance: The company's checking account balance is stated as $4,010. Now, you need to consider any additional adjustments to reach the final reconciled balance.

Adjusted bank balance ($4,350) - Bank charges ($12 + $18) = Adjusted company balance ($4,320)

5. Deduct any unrecorded withdrawals or fees: The company forgot to record a $30 ATM withdrawal, so it should be deducted from the adjusted company balance.

Adjusted company balance ($4,320) - Unrecorded withdrawal ($30) = Reconciled bank balance ($4,290)

After going through the bank reconciliation process, the final reconciled bank balance is $4,290.