Jason Kuhn's check stubs indicated a balance of $4,565.12 for Kuhn's Wilderness Outfitters on March 31. This included a record of a deposit of $926.10 mailed to the bank on March 30, but not credited to Kuhn's account until April 1. In addition, the following checks were outstanding on March 31:
The bank statement showed a balance of $5,419 as of March 31. The bank statement included a service charge of $4.10 with the date of March 29. In matching the canceled checks and record of deposits with the stubs, it was discovered that Check No. 456, a payment on account to Office Suppliers, Inc., for $39 was erroneously recorded on the stub as $93. This caused the bank balance on that stub and those following to be $54 too small. It was also discovered that an ATM withdrawal of $100 for personal use was not recorded on the books.
Kuhn maintains a $200 petty cash fund. His petty cash payments record showed the following totals at the end of March of the current year:
This left a balance of $2.55 in the petty cash fund, and the fund was replenished.
Prepare a bank reconciliation for Jason Kuhn as of March 31, 20--.
Bank balance :
Bank balance is $5,419. Deposit in transit of $926.1 is added and 5 checks totalling $1,830.08 that have been issued but not yet presented to the bank are deducted.
Adjusted bank balance is $4,515.02
Book balance is $4,565.12. Erroneous check number 456 over-recorded by $54 is corrected by adding back $54 to book balance. Unrecorded bank service charge of $4.10 and unrecorded ATM withdrawal of $100 is recorded by reducing the book balance by the respective amounts.
Adjusted book balance is $4,515.02