Using the following information, prepare a bank reconciliation for Miller Co. for August 31:
(a)The bank statement balance is $4,690.
(b)The cash account balance is $5,080.
(c)Outstanding checks amounted to $715.
(d)Deposits in transit are $1,020.
(e)The bank service charge is $40.
(f)A check for $72 for supplies was recorded as $27 in the ledger.

Question

Mackenzie Brown · Accepted Answer

Final Answer :  ?                                              M i l l e r   C o .                                   B a n k   R e c o n c i l i a t i o n                                             A u g u s t   31  Cash balance according to bark statement  $ 4 , 690  Add deposits in transit not recorded by bank  1 , 020 ‾ $ 5 , 710  Deduct outstanding checks  715  Adjusted balance  $ 4 , 995 ‾  Cash balance according to company’s records  $ 5 , 080  Deduct: Bank service charge  $ 40                  Error in recording  45               85  Adjusted balance  $ 4 , 995 ‾ \begin{array}{lr}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Miller~ Co.\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bank ~Reconciliation\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~August~ 31\\hline	ext { Cash balance according to bark statement }  &  \$ 4,690 \	ext { Add deposits in transit not recorded by bank }  &  \underline{1,020} \ &  \$ 5,710 \	ext { Deduct outstanding checks }  &  {715} \	ext { Adjusted balance }  &  \underline{\$ 4,995} \ &  \	ext { Cash balance according to company ' s records }  &   \$ 5,080\	ext { Deduct: Bank service charge }  &    \$ 40~~~~~~~~~~~~~~~\\quad 	ext { Error in recording }  &  45 ~~~~~~~~~~~~~85\	ext { Adjusted balance }  & \underline{\$ 4,995}\end{array}                                                                                     M i ll er   C o .                                                                   B ank   R eco n c i l ia t i o n                                                                                       A ugu s t   31  Cash balance according to bark statement   Add deposits in transit not recorded by bank   Deduct outstanding checks   Adjusted balance   Cash balance according to company’s records   Deduct: Bank service charge   Error in recording   Adjusted balance  ​ $4 , 690 1 , 020 ​ $5 , 710 715 $4 , 995 ​ $5 , 080 $40                               45                           85 $4 , 995 ​ ​ ​

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