Question

Jansen Company’s general ledger showed a checking account balance of $24,320 at the end of May 2018. The May 31 cash receipts of $2,390, included in the general ledger balance, were placed in the night depository at the bank on May 31 and were processed by the bank on June 1. The bank statement dated May 31, 2018, showed bank service charges of $43. All checks written by the company had been processed by the bank by May 31 and were listed on the bank statement except for checks totaling $1,940. Required: Prepare a bank reconciliation as of May 31, 2018. [Hint: You will need to compute the balance that would appear on the bank statement.]

Answer 1

Answer:

Jansen Company’s checking account balance   24,320

• minus  cahs receipts                                       -2,390
• minus  bank service charges                              - 43
• plus uncollected checks                                  +1,940

Bank statement balance                                           23,827

Explanation:

Starting from the company`s balance in its bank checking account, we subtract the deposit not taken into account by the bank and the expenses not taken into account by the company and add the checks pending collection since they have been subtracted by the company in their general ledger, but they have not been charged to the bank yet. That gives us the balance in the bank statement.