BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$501.60
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$513.00
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$586.60
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$660.00
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Detailed explanation-1: -The formula is (Cash account balance per your records) plus or minus (reconciling items) = (Bank statement balance). When you have this formula in balance, your bank reconciliation is complete.
Detailed explanation-2: -Bank Reconciliation Procedure Using the cash balance shown on the bank statement, add back any deposits in transit. Deduct any outstanding checks. This will provide the adjusted bank cash balance. Next, use the company’s ending cash balance, add any interest earned and notes receivable amount.
Detailed explanation-3: -In the bank reconciliation process, the total amount of outstanding checks is subtracted from the ending balance on the bank statement when computing the adjusted balance per bank. (No adjustment is needed to the company’s general ledger accounts, since the outstanding checks were recorded when they were issued.)