USA Bank Reconciliation

[cookiemonster123]

Stuck on this problem for my first accounting class. Looking for help to solve it, my teacher has not been any help. The problem deals with bank reconciliation.

~The following information is available to assist you in preparing a bank reconciliation for Karen's Catering on March 31:
a. the balance on the March 31 bank statement is $6,506.10
b. not included on the back statement is a $423 deposit made by Karen's late on March 31
c. A comparison between the canceled checks listes on the bank statement and the company records indicated that the following checks are outstanding at March 31
No. 112 $42.92
No. 117 $307.00
No. 120 $ 10.58
No. 122 $75.67
d. the bank acts as a collection agency for checks returned for insufficient funds. The March bank statement indicate that one such check in the amount of $45.00 was collected and deposited and a collection fee of $4.50 was charged.
e. Interest earned on the checking account and added to Karen's account during March was $4.30. Miscellanios bank service charges amounted to $22.
f. A comparison between the deposits listed on the bank statement and the company's books revealed that a customer's check in the amount of $1,250 appears on the bank statement in March but was never added to the customer's account on the company's books.
g. the comparison of checks cleared per the bank statement with those per the books revealed that the wrong amount was charged to the company's account for a check. The amount of the check was $990. The proof machine encoded the check in the amount of $909, the amount charged against the company's account.

1. Determine the balance on the books before any adjustments as well as the corrected balance to be reported on the balance sheet.
2. What would you recommend Karen's do as a result of the bank error (g) and why?
~
I know how to do everything except find the balance per books on March 31, so I was wondering if anyone could explain how I would be able to find that number. Thanks!

 

[Steve-LevelUp]

Start with a logical starting point, and then assess the impact of each line item and what it would do to the balances.

For example, if the bank balance was $6,506.10. Then, presume the book balance starts at the same place. If there were 4 outstanding checks, what impact would that have on the balance? The bank balance would not change, but the book balance would be lower by those 4 outstanding checks. Read each line item and determine which balance would be impacted and by how much. Try putting everything on a worksheet and posting it here. We can help identify allocation errors if we have the worksheet available for us to comment on.

 

[cookiemonster123]

Thanks for the help, but I am still a little bit confused, so I added my worksheet.

 

[Steve-LevelUp]

You really should put this in excel so that you can see and understand what is being added and deducted everywhere.

Just remember that the final adjusted book balance and adjusted bank balance should match.