Adjustment Items

1. Deposits in transit

2. Outstanding checks

3. Not sufficient fund (NSF) checks

4. Bank service charges

Exercises of Bank Reconciliation

1. What is the amount of adjusted cash balance in the following case?

Cash balance per bank statement

$30,600

Cash balance per company books

35,200

Bank service charges

1,200

Collections not recorded

5,900

Deposits in transit

8,600

Not Sufficient Fund (NSF) checks

8,100

Outstanding checks

7,400

(1) Adjusted from cash balance per company books

Cash balance per company books

$35,200

Add

   Collections not recorded

5,900

Subtract

   Not Sufficient Fund (NSF) checks

(8,100)

   Bank service charges

(1,200)

Adjusted cash balance

$31,800

(2) Adjusted from cash balance per bank statement

Cash balance per bank statement

$30,600

Add

   Deposits in transit

8,600

Subtract

   Outstanding checks

(7,400)

Adjusted cash balance

$31,800

2. What is the amount of adjusted cash balance in the following case?

Deposits in transit

$24,800

Collections not recorded

17,300

Not Sufficient Fund (NSF) checks

21,600

Bank service charges

1,500

Outstanding checks

27,400

Cash balance per company books

182,500

Cash balance per bank statement

179,300

(1) Adjusted from cash balance per bank statement

Cash balance per bank statement

$179,300

Add

   Deposits in transit

24,800

Subtract

   Outstanding checks

(27,400)

Adjusted cash balance

$176,700

(2) Adjusted from cash balance per company books

Cash balance per company books

$182,500

Add

   Collections not recorded

17,300

Subtract

   Not Sufficient Fund (NSF) checks

(21,600)

   Bank service charges

(1,500)

Adjusted cash balance

$176,700