Make the bank reconciliation


Question: The following data is available to reconcile Acme Co.'s book balance of cash with its bank statement cash balance as of April 30. The April 30 cash balance according to the accounting records is $78,356, & the bank statement cash balance for that date is $83,525.

[A] The bank erroneously cleared a $480 check against the account in April that was not issued by Acme. The check documentation included with the bank statement indicates the check was actually issued by Lightning Co.

[B] On April 30, the bank issued a credit memorandum for $53 interest earned on Acme’s account.

[C] When the April checks are compared with entries in the accounting records, it is found that Check No. 1828 had been correctly drawn for $1,530 to pay for advertising but was erroneously entered in the accounting records as $1,350

[D] A credit memorandum indicates that the bank collected $10,000 cash on a note receivable for Acme, deducted a $30 collection fee, & credited the balance to the firm's Cash account. Acme did not record this transaction before receiving the statement.

[E] A debit memorandum of $895 is enclosed with the bank statement for an NSF check for $870 received from a customer. The bank assessed a $25 fee for processing it.

[F] Acme April 30 daily cash receipts of $5,102 were placed in the bank's night depository on that date, but do not appear on the April 30 bank statement.

[G] Acme April 30 cash disbursements journal indicates that Check No. 1837 for $584 and Check No. 1840 for $1,219 were both written and entered in the accounting records, but are not among the canceled checks.

Make the bank reconciliation for this firm as of April 30.

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Finance Basics: Make the bank reconciliation
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