BANK RECON

1. MM Co. provided the bank statement for the month of December which included the ff. information:
Balance Dec. 31 2,800,000
Service charge for December 12,000
Interest paid by bank for MM deposits 10,000
In comparing the bank statement to its own records, the entity found the ff.:
Deposits made but not yet recorded by the bank 350,000
Checks written and mailed but not yet recorded by bank 650,000
In addition, the entity discovered that it had drawn and erroneously recorded a check for 46,000 instead of
64,000. What is the unadjusted balance per ledger? ______________________

2. MM Co. showed a cash account balance of 4,500,000 at the month end. The bank statement did not include a deposit
of 230,000 made on the last day of the month. The bank statement showed a collection by the bank of 94,000 for the
depositor and a costumer check for 32,000 returned because it was NSF. A customer check for 45,000 was recorded by
the depositor as 54,000 and a check written for 79,000 was recorded as 97,000. What amount should be reported as
cash in bank? ______________________

3. MM Co. provided the bank statement for the month of April which included the ff. information:
Bank service charge for April 15,000
Check deposited by MM during April was not collectible and
Has been marked NSF by the bank and returned 40,000
In comparing the bank statement to its records, the entity found the ff.
Deposits made but not recorded by the bank 130,000
Checks written and mailed but not yet recorded by the bank 100,000
All DITs and OCs have been properly recorded in entity’s book.
A customer check of 35,000 payable to MM had not yet been deposited and had not been recorded by the entity.
The cash balance per ledger is 920,000. Adjusted cash in bank for April? ________________________

4. MM Co. kept all ash in a checking account. An examination of the accounting records and bank statement for the
month of June revealed the ff.:
*the cash balance per book on June 30 was 8,500,000
*a depository of 1M placed in bank’s night depository did not appear on bank statement
*the bank statement showed that on June 30 the bank collected note for the entity and credited the proceeds of
950,000 to the entity’s account
*checks outstanding on June 30 amounted to 300,000 including certified check of 100,000
*the entity discovered that a check written in June for 200,000 if payment of an account payable had been
recorded in the entity’s records as 20,000
*included in the June bank statement was NSF check for 250,000 received from a customer on June 26
*the bank statement showed a 20,000 service charge for June
Cash in bank ________________ and balance per bank statement _______________________

5. MM provided the ff. data for the month of January:

Balance per book, January 31 3,130,000
Balance per bank statement, January 31 3,500,000
Deposits in transit 550,000
NSF check received from a customer returned by the bank 50,000
Checks outstanding January 31 650,000
Debit memo for safety deposit box rental 5,000
Creditor check of 30,000 was incorrectly recorded in depositor’s book as 300,000
A customer check for 200,000 was recorded by the depositor as 20,000
Bank by mistake, credited 74,000 to MM account instead of 47,000
The teller erroneously debited MM’s account 135,000 instead of 153,000

Amount to be reported as adjusted cash in bank? ___________________________