Adjusted Bank Balance:
Balance per bank statement: $13,550
Add:
Deposit in transit: $580
Correction of bank error: $265
Total Adjusted Bank Balance: $14,395
Adjusted Book Balance:
Balance per book: Unknown
Less:
Outstanding checks: $2,450
Correction of check error: $1,000
Correction of bank error (double payment): $85
Total Adjusted Book Balance: Unknown
To complete the bank reconciliation, we need to determine the adjusted book balance. We know that the outstanding checks total $2,450 and that there was a correction for a check error of $1,000. Therefore, the total of the outstanding checks and the check error correction is $3,450. To find the adjusted book balance, we need to subtract this amount from the adjusted bank balance:
Adjusted Book Balance = Adjusted Bank Balance - (Outstanding checks + Check error correction)
Adjusted Book Balance = $14,395 - ($2,450 + $1,000)
Adjusted Book Balance = $10,945
Therefore, the adjusted book balance is $10,945.
Florence Company received a bank statement showing a balance of $13,550 on November 30, 2019. During the bank reconciliation process, Florence’s accountant noted the following bank errors:
A check for $265 issued by Florentine, Inc., was mistakenly charged to Florence Company’s account.
Check 2782 was written for $200 but was paid by the bank as $1,200.
Check 2920 for $85 was paid by the bank twice.
A deposit for $580 on November 22 was credited by the bank for $850.
Assuming outstanding checks total $2,450, prepare the adjusted bank balance section of the November 30, 2019, bank reconciliation.
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