Question

Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:

Answer 1

Answer:

bank account reconciliation:

bank account balance $5,796

- outstanding checks $330

+ deposits in transit $424

+ error from Shirt, Inc., check $340

reconciled balance $6,230

cash account reconciliation:

cash account balance $6,026

+ note collected $410

- bank fee $34

- NSF check $172

reconciled balance $6,230

assets                                                                 = liabilities  +      equity

cash      acc. rec.     notes rec.       int. rec.

204       172              -382               -28              =    0           +      -34            

income statement

revenues                 -                  expenses                     = net income

0                              -                   34                                = -34

All the adjustments are considered cash flows from operations.