Highlights for Bank Reconciliations Made Easy
- Two tutorial videos
- Sample bank reconciliation problem
- Journal entries after bank reconciliation
Below is a sample problem and two tutorial videos, that should make bank reconciliations easy. The first video takes you through the bank reconciliation with a sample problem below. The second tutorial video goes through the journal entries necessary for completing the bank reconciliation.
Bank Reconciliation Example Problem
S. Archer received a bank statement from For Spies Bank indicating a bank balance of $7,700. Based on Archer’s check stubs, the ending checkbook balance was $8,079. Your task is to prepare a bank reconciliation for as of July 31, 202X, from the following information (journalize entries as needed):
a. Checks outstanding: no. 122, $760; no. 130, $670; no. 135, $115
b. Deposits in transit, $1,700.
c. Archer forgot to record a $1,210 equipment purchase made with a debit card.
d. Bank service charges, $40.
e. For Spies Bank collected a note for Archer, $1,090, less a $6 collection fee.
f. NSF (non-sufficient funds): B. Dillon’s check in payment of account was returned for insufficient funds of $58.
